Chip profit taking outweighs the U.S. advance
Japanese stocks fell on October 7 after two sessions of gains. The Nikkei closed at 70,035.71, down 648.27 points, or 0.92%, according to Fisco’s closing report. JPX’s official index figures put TOPIX at 4,154.11, down 29.45 points, or 0.70%.
Taking profits in chip stocks after their sharp rally was the main reason Tokyo failed to follow rising U.S. equities. Fisco’s opening report highlighted overheating, elevated domestic and overseas yields, and Middle East concerns. The Nikkei’s larger percentage decline than TOPIX also reflects pressure from high-priced semiconductor shares.
Morning losses and an afternoon recovery that fades
The charts show losses deepening from early highs toward the morning close, including a move of roughly 0.5%. Reports reviewed point primarily to profit taking after the open rather than a newly released indicator or statement. IwaiCosmo Securities’ morning review described falling AI-related stocks alongside buying in tire makers benefiting from cheaper oil and selected construction and property shares. The session looks more like rotation away from recent leaders than a blanket rejection of earnings prospects.
The Nikkei recovered in the afternoon, but the rebound around 2 p.m. Japan time failed to hold and prices weakened again late in the session. TOPIX also softened toward the close. Dip buying did not restart an advance. The difference across the lunch break on the equity axis should not be read as a sudden move during continuous trading.
Selection within equities matters more than the yen
The 24-hour USD/JPY chart shows a dip followed by a recovery, without a conspicuous one-way move of roughly 0.5%. The equity axis cannot supply a timestamp for the currency trough. Valuation concerns in chip stocks explain the decline better than a yen surge driving widespread selling. Holding 70,000 did not change the weak follow-through: afternoon buying failed to absorb renewed selling.
Major Index Closes
- Nikkei 22570,035.71 −0.92%
- TOPIX4,154.11 −0.70%
