TOKYO (AFP) – Japan’s Nikkei 225 index fell yesterday as investors dumped semiconductor stocks following weak earnings from chip giant TSMC.
The benchmark Nikkei 225 index lost 0.57 per cent, or 186.27 points, to end at 32,304.25, while the broader Topix index edged up 0.06 per cent, or 1.30 points, to 2,262.20.
The market remained under pressure as investors were spooked after TSMC said it expected a 10 per cent fall in sales this year while delaying the start of production at a planned factory in the United States (US).
The news comes as global semiconductor shares face headwinds after surging earlier this year on hopes that developments in artificial intelligence would fuel demand for chips.
Still, the market remained generally supported by bargain-hunting.
“It’s a very difficult condition,” said Chihiro Ota of SMBC Nikko Securities. “On one hand, we have a theme that semiconductors are down. On the other hand, we also see dip-buying kicking in when share prices fall.”
The Bank of Japan is widely forecast to maintain its super easy monetary policy although until recently some analysts had speculated that it might make small adjustments towards tightening.
Among major shares, Tokyo Electron, which makes tools to build semiconductors, fell 5.62 per cent to JPY19,300, while Advantest, which makes semiconductor tests, plunged 5.79 per cent to JPY19,775.
SoftBank Group lost 0.74 per cent to JPY6,946 and heavily weighted Fast Retailing, which operates the Uniqlo brand, dropped 0.88 per cent to JPY33,860.
Toyota edged up 0.02 per cent to JPY2,287.5, Japan Airlines added 0.49 per cent to JPY3,070 and Sony Group rose 0.31 per cent to JPY13,115.
