Tokyo shares reversed after the prior session's 2,342-point surge, with US semiconductor weakness and profit-taking pressuring Advantest, Tokyo Electron and SoftBank Group.
Japan's Nikkei 225 fell on August 6, briefly sliding more than 900 points shortly after the Tokyo open to the 65,300 level as semiconductor and AI-related shares tracked overnight weakness in US technology stocks. The pullback came a day after the index's sharp 2,342-point rise, prompting short-term profit-taking in names that had been heavily bought, including Advantest, Tokyo Electron and SoftBank Group. In the United States on August 5, the Nasdaq Composite fell 0.83%, ending a four-session winning streak, while the Philadelphia Semiconductor Index, or SOX (major chip-stock benchmark), lost 1.39%. Advanced Micro Devices was sold after its quarterly earnings release, and SanDisk's April-June results were followed by a July-September revenue outlook that missed market expectations, sending its shares lower in after-hours trading. South Korea's KOSPI, which is heavily weighted toward chipmakers, also opened lower on August 6, adding to the cautious mood. Some support came from Honda after it raised its earnings forecast, while Fast Retailing and Suzuki also gained. The broader TOPIX extended its gains, suggesting money shifted toward domestic demand-oriented stocks and companies with stronger earnings expectations. Investors are now watching earnings and guidance from US semiconductor companies for clues on the direction of AI and chip-related shares in Tokyo.