Nikkei Down 0.9% as Stocks Slip; Tokyo Electron Leads
SkimNews Take
The Nikkei's profit-taking on tech gains amidst broader Asian market resilience suggests a rotation within the region rather than a widespread flight from equities.
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- Nikkei slipped 0.9% to 59,000.21, erasing gains after three days of 5.2% advances and leaving the index up 3.6% for the week.
- Topix fell 1.05% to 3,774.48 on Friday, though it remains roughly 1% higher for the week.
- Shuji Hosoi of Daiwa Securities noted investors sold chip‑related shares to lock in profits as the Nikkei’s rapid rise raised caution.
- Tokyo Electron dropped 3%, becoming the leading contributor to the Nikkei’s decline.
- Daikin Industries fell 2.58% after a 9% surge the previous session, amid reports that Elliott Management urged a $6 billion share buyback over the next few years.
- TDK rose 2.26% while other semiconductor equipment firms like Advantest gained modestly, showing some resilience in the sector.
- Tokyo Stock Exchange data showed 32% of 1,600 prime‑market stocks rose, 64% fell, and 3% were flat.
Why it matters: The slide shows Japanese investors are cashing out of fast‑gaining tech and chip stocks, hurting firms such as Tokyo Electron, SoftBank, and Daikin, while a few semiconductor equipment players like TDK eke out gains. The breadth‑negative market, with 64% of stocks falling, signals a shift from the recent rally.
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