Nikkei edges lower as Kioxia's slide is cushioned by Tokyo Electron
By the midday break the Nikkei had lost 0.31% as Kioxia shares sank nearly 13% on a weak outlook, while gains at Tokyo Electron and Panasonic limited the decline.
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what happened
Tokyo's Nikkei index dipped in Monday's midday session, weighed down by a sharp decline in Kioxia, the memory chipmaker. Gains in Tokyo Electron and other companies with upbeat forecasts kept the losses in check. By the break the Nikkei had shed 0.31% to 63,095.11, while the broader Topix fell 0.84% to 3,931.61, according to Reuters.
Kioxia shares dropped 13.29% and became the biggest drag on the index, after the company's guidance for the quarter ending in December disappointed investors. Tokyo Electron climbed 5.11% after the semiconductor equipment maker projected that its annual group net profit would grow 50%, ahead of analyst estimates. Panasonic Holdings rose 5.16% after lifting its full-year operating profit target by 20% to 710 billion yen ($4.51 billion), a change it linked partly to stronger demand for AI-related products.
On Wall Street on Friday, stocks slid, with the Nasdaq posting its steepest one-day percentage fall since June 5 after weak quarterly reports from Intel and Amazon heightened concerns about the heavy spending on AI by big companies. Shares of major Japanese banks Mitsubishi UFJ, Sumitomo Mitsui and Mizuho each fell more than 2%. Of over 1,500 stocks on the Tokyo Stock Exchange's prime market, 28% advanced, 68% declined and 3% were unchanged. Exchange rate: $1 = 157.53 yen.
why it matters
The split between Tokyo Electron and Kioxia shows investors rewarding companies with strong AI-linked demand and punishing weak guidance. It remains unclear whether pressure from the US tech selloff will become a lasting trend in Tokyo.
market impact
Japanese equities: Kioxia's slide weighs on the Nikkei, partly offset by gains in Tokyo Electron and Panasonic
- Kioxia shares pressure down — quarterly outlook through December disappointed investors
- Tokyo Electron shares pressure up — forecast of 50% annual profit growth beat analyst expectations
- Nikkei 225 mixed — Kioxia's weakness and strong results elsewhere pull in opposite directions
instruments
sources
- Japan's Nikkei falls as Kioxia tanks, mitigated by gains in Tokyo Electron — Reuters, 2 November 2026 at 03:02 UTC
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