Japan’s Nikkei share average fell on Tuesday as chip-related stocks tracked declines among their US peers, with investors turning cautious ahead of Nvidia’s quarterly earnings report due on Wednesday, Reuters reported.
The Nikkei was down 0.5% at 65,197.7 as of 0146 GMT, while the broader Topix edged up 0.06% to 4,075.83, according to Reuters.
Market sentiment remained cautious ahead of Nvidia’s results, which are expected to be a major catalyst for global technology stocks. Reuters reported that investors are watching for any signs of slowing growth at the chipmaker, which could revive concerns about elevated valuations across the artificial intelligence sector.
US technology stocks weakened on Monday, with the S&P 500 and Nasdaq ending lower as investors assessed fresh US economic sanctions against Iran and prepared for a week that also includes a closely watched inflation report. Nvidia shares fell for a seventh consecutive session.
Japanese semiconductor-related stocks came under pressure. Chip-testing equipment maker Advantest declined 3.33%, while Tokyo Electron fell 1.03%. Memory chipmaker Kioxia dropped 1.37%.
According to Reuters, weakness in South Korean chipmaker Samsung Electronics also weighed on Japanese semiconductor stocks. Samsung shares fell 3.5% on Tuesday after plunging 8.7% in the previous session, following investor disappointment over its $79 billion shareholder-return plan.
The declines in technology stocks were partly offset by gains in value-oriented sectors. The shipping sector climbed 2.91%, making it the best-performing among the Tokyo Stock Exchange’s 33 industry sub-indexes. Reuters reported that shipping stocks have attracted buying interest amid heightened tensions in the Middle East.
Fibre-optic cable makers were also among the notable gainers, with Fujikura rising 4.15% and Furukawa Electric advancing 6%.
Market breadth was relatively positive despite the decline in the Nikkei. Of more than 1,500 stocks traded on the TSE Prime Market, 53% advanced, 43% declined and 3% were unchanged, Reuters reported.
