Japan's Nikkei slips as Kioxia tumbles 13%; Tokyo Electron, Panasonic limit losses

Market breadth remained weak on the Tokyo Stock Exchange's Prime Market.

The Nikkei 225 fell 0.31% to 63,095.11 at the midday break, while the broader Topix index declined 0.84% to 3,931.61.

According to the report, investor sentiment was subdued following a decline on Wall Street last week and disappointing corporate results from Kioxia. However, stronger-than-expected earnings and upbeat forecasts from some Japanese companies provided support to the benchmark index.

Kioxia shares plunged 13.29%, emerging as the biggest drag on the Nikkei, after the memory chip maker's outlook for the quarter through December fell short of investor expectations.

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In contrast, Tokyo Electron gained 5.11% after the semiconductor equipment maker forecast a 50% increase in annual group net profit, exceeding analysts' expectations.

Panasonic Holdings advanced 5.16% after raising its full-year operating profit forecast by 20% to 710 billion yen ($4.51 billion). The company's improved outlook was supported by several factors, including stronger-than-expected demand related to artificial intelligence.

The weakness in Japanese equities came after a sharp selloff in US markets on Friday. The Nasdaq recorded its biggest single-day percentage decline since June 5, as disappointing quarterly results from Intel and Amazon intensified concerns over the sustainability of massive artificial intelligence-related investments by major technology companies.

Banking stocks also came under pressure, with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group each declining more than 2%.

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Market breadth remained weak on the Tokyo Stock Exchange's Prime Market. Of more than 1,500 stocks traded, 28% advanced, 68% declined and 3% remained unchanged, according to the report.