Chip buying leads a narrow morning recovery
Japan’s market opened with buying in AI and semiconductor shares that had fallen in the previous session. The Nikkei was up 415.61 yen at the morning close, while TOPIX edged lower. IwaiCosmo Securities reported gains in sectors including electrical equipment, alongside declines in banks and pharmaceuticals. A recovery in stocks with a large index impact lifted the Nikkei without producing a broad market advance.
Our charts show the Nikkei extending its gains during the morning and holding near its highs early in the afternoon after the lunch break. TOPIX was less convincing from the outset. The divergence fits a market in which buying returned to previously battered chip shares while other sectors remained weak.
The rebound unravels around 2 p.m.
NQN, carried by Nomura Securities, reported that Lasertec and Tokyo Electron turned lower after ASML’s preliminary July–September results emerged around 2 p.m. Japan time. Selling in chip-equipment shares is the central explanation for the afternoon reversal: buying ahead of the results gave way to selling once they arrived.
The Nikkei chart shows a sharp afternoon drop from its highs and a move below the previous close late in the session. A partial recovery failed to recapture the morning advance, leaving the index down for a fifth consecutive day. TOPIX also fell in the afternoon. USD/JPY showed no abrupt move of roughly 0.5% comparable with the equity reversal; the defining move was the failure of the chip rebound rather than a currency shock.
Major Index Closes
- Nikkei 22567,744.29 −0.05%
- TOPIX4,096.78 −0.34%
