Japan’s Nikkei falls as tech shares drag; Astellas surges

TOKYO: Japan’s Nikkei share average fell on Thursday, dragged lower by technology stocks on lingering valuation concerns.

The benchmark Nikkei 225 Index fell 0.8% to 53,832.26. The broader Topix slid 0.26% to 3,646.06.

So far this year, the Nikkei has gained 7.9%.

SoftBank Group tumbled 6.4% after its affiliated chip design firm Arm Holdings missed analysts’ expectations on licensing revenues.

“Chip-related stocks are expected to be soft as concerns mount in the US over rich valuations and AI investment,” said Takayuki Miyajima, senior economist at Sony Financial Group.

“But in Japan, selective buying tied to earnings is likely to continue.”

Semiconductor-related stocks fell in early Tokyo trading, with chip-maker Rohm down 8.3% to become the worst percentage loser on the Nikkei, while sector supplier Advantest slid 4.7% and chipmaking device company Disco declined 4.3%.

There were 147 advancers on the Nikkei index against 78 decliners.

The pharmaceuticals sector was the top performer among the Tokyo Stock Exchange’s 33 industry groups, led by Astellas Pharma’s 10% surge after the company lifted its net profit forecast for this fiscal year by nearly five times.