The Nikkei 225 Index Closes 2.68% Higher

Asian stock markets declined on Friday, mirroring losses on Wall Street as technology and artificial intelligence shares came under renewed selling pressure following disappointing earnings from major US tech companies. In after-hours trading, Amazon plunged around 7% after revealing a sharp increase in capital expenditures, while Intel sank 23% after providing a weaker-than-expected quarterly outlook and pointing to a slowdown in the PC market. Concerns over AI-related investments have also weighed on Asian markets, triggering significant losses among major South Korean and Japanese technology companies, including Samsung Electronics (-4%), SK Hynix (-7%), Kioxia Holdings (-9%), Advantest (-8%) and SoftBank Group (-5%). South Korea’s Kospi Index dropped more than 4%, while Japan’s Nikkei 225 declined over 2%.

Japan’s Nikkei 225 Index fell 1.3% to below the 64,000 level on Friday, snapping a three-day winning streak as technology shares faced renewed selling pressure following disappointing earnings from major US tech companies. In after-hours trading, Amazon shares plunged around 7% after announcing a sharp increase in capital expenditures, while Intel tumbled 23% after issuing a weaker-than-expected quarterly outlook and signaling a slowdown in the PC market. On the domestic front, investors are awaiting earnings reports from Kioxia Holdings and Tokyo Electron for further indications of AI-related demand, with their shares declining 6% and 3.6%, respectively. Other major technology stocks also recorded steep losses, including Advantest (-6.1%), SoftBank Group (-4.9%) and Lasertec (-9.1%). Meanwhile, market participants turned their attention to the upcoming Bank of Japan policy announcement, with policymakers widely expected to leave interest rates unchanged.

The Nikkei 225 Index advanced 1.1% to close at 64,659 on Thursday, extending its gains to a third consecutive session as strong earnings from chip-testing equipment maker Advantest boosted market sentiment. Advantest shares surged 6% after the company raised its full-year earnings forecast, citing stronger-than-anticipated demand for equipment used to test artificial intelligence chips. Other major technology stocks also advanced, with Kioxia gaining 1.2%, Ibiden rising 2%, and Tokyo Electron climbing 2.4%. However, disappointing earnings from Alphabet and Samsung Electronics reignited concerns over the sustainability of AI-related investments, limiting the broader market’s gains. Investors also turned their attention to the Bank of Japan’s upcoming policy meeting, where officials are widely expected to maintain current interest rates while potentially signaling a rate hike in December amid persistent inflationary pressures.