Japan’s Nikkei stock average fell on Thursday as technology stocks fell after forecasts from artificial intelligence (AI) firm Nvidia failed to impress some growth-hungry investors.
The Nikkei .N225 fell 0.39% to 38,220.34 at midday after falling as much as 1.12% earlier in the day.
Chip testing equipment maker Advantest 6857.T, a supplier to Nvidia NVDA.O, fell 0.52 percent, while chipmaking equipment giant Tokyo Electron 8035.T fell 1.11 percent. AI-focused startup investor SoftBank Group 9984.T fell 2.31 percent.
The broader Topix index .TOPX fell 0.29%, and a subindex of growth stocks .TOPXG fell 0.36% versus a 0.22% drop in value stocks .TOPXV.
“Nvidia’s earnings and sales forecasts beat estimates, but not by enough to meet the lofty expectations of some in the market,” said Maki Sawada, equity strategist at Nomura Securities.
“But it was another positive set of results from Nvidia, and I don’t think sales will continue for much longer.”
In addition to moves in Japanese stocks, investors should also keep an eye on the direction of U.S. stock futures, he said.
Futures on the technology-heavy Nasdaq NQc1 were down 0.88% by 0230 GMT.
Electronics component maker Nidec 6594.T was the Nikkei’s biggest loser, falling more than 4 percent after U.S. server maker Super Micro Computer SMCI.O – with which it is building water-cooling modules for servers – delayed filing its annual report, sending its shares down 25 percent.
At the other end of the spectrum, insurers .IINSU.T were the best performers among the 33 industry groups on the Tokyo Stock Exchange, up 1.3%. Sompo Holdings 8630.T rose 2.58% and was the biggest gainer on the Nikkei. Tokio Marine Holdings 8766.T added 1.85%.
Pharmaceutical companies .IPHAM.T continued their strong run, rising 0.57%, led by a 2.14% gain in Daiichi Sankyo 4568.T.
However, Sumitomo Pharma 4506.T fell 2.92% after rising to a new 13-month high earlier in the session.
Of the Nikkei’s 225 components, 146 fell, 74 rose and five remained stable.
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