TOKYO: Japan’s Nikkei shed early gains to end lower on Thursday, pulled down by lacklustre performances in chip-related stocks, as Tokyo Electron tracked a slump in Arm Holdings after the British chip designer missed market expectations for annual revenue.
The Nikkei ended 0.34% lower to close at 38,073.98, after rising as much as 0.5% earlier in the session.
“Declines in Arm shares drove a sell-off of Tokyo Electron and other chip-related stocks,” said Shuji Hosoi, senior strategist, Daiwa Securities.
Arm Holdings gave a full-year revenue forecast that missed expectations, sending its Frankfurt-listed shares down 10% on Thursday.
Shares of Tokyo Electron, a Japanese chip-making equipment maker, slipped nearly 3% to become the biggest drag on the Nikkei.
Technology investor SoftBank Group, which owns around 90% stake in Arm Holdings, also dropped about 3%. “There were no other major market-moving cues today. Most stocks rose,” said Daiwa’s Hosoi.
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