Nikkei 225 falls 0.7 percent as Nvidia concerns hit chip stocks

The Nikkei 225 ended Thursday's Tokyo session at 60,819.36, down 429.23 points, or 0.7 percent from the previous close. The decline came after the index had risen as much as 0.88 percent earlier in the session, according to Reuters.

Chip stocks reverse morning gains

Technology and semiconductor-related shares weakened in afternoon trading. Reuters reported that Nvidia shares had fallen more than 8 percent in extended trading after reports that the chipmaker's board was considering removing Chief Executive Jensen Huang. Nasdaq futures were also nearly 1 percent lower during Asian trading.

The pressure was particularly visible among Japanese companies linked to Nvidia's supply chain. Advantest fell 4.64 percent and Ibiden dropped 8.32 percent, with Ibiden recording the weakest performance among Nikkei constituents. Kioxia declined 2.83 percent, while SoftBank Group lost 3.04 percent after giving up an earlier gain. Tokyo Electron retained a smaller advance of 0.35 percent.

Topix gains despite Nikkei weakness

The broader Topix moved in the opposite direction, rising 7.94 points, or 0.2 percent, to 3,937.33. Xinhua said buying in companies with strong earnings and relatively undervalued domestic-demand stocks supported the broader market. Of the 225 Nikkei components, 153 rose and 72 fell, according to Reuters, indicating that the index decline was concentrated in influential technology shares rather than reflecting a uniformly weak session.

Individual gainers included Resonac Holdings, which rose 12.48 percent, Dowa Holdings, up 10.92 percent, and Japan Tobacco, up 7.80 percent, according to Investing.com. The contrasting performance suggests that investors continued to differentiate between companies benefiting from firm earnings and those most exposed to uncertainty in the artificial-intelligence investment cycle.

Further coverage of the Nikkei 225 is available in the index topic overview.