TOKYO: Japan’s Nikkei share average closed nearly 3 percent lower on Thursday as chip-related stocks sold off and an escalating Middle East conflict hurt risk appetite, overshadowing record earnings and a stellar outlook from Taiwan Semiconductor Manufacturing Co.
The Nikkei ended 2.8 percent lower at 66,835.54 after falling as much as 3.3 percent earlier in the day, while the broader Topix slid 1.5 percent to 4,028.79. Market breadth was negative, with 139 decliners on the Nikkei 225 against 85 advancers and one unchanged.
Taiwan Semiconductor Manufacturing (TSMC) posted a record second-quarter net profit that jumped 77 percent and beat market forecasts, as surging global demand for AI processors boosted earnings.
The world’s main producer of advanced AI chips also raised its full-year revenue growth forecast in US dollar terms to slightly above 40 percent from more than 30 percent previously. It said capital expenditure in the next three years would be significantly higher than in the previous three.
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