tokyo stocks stumble: asml's results trigger semiconductor jitters

2025-04-16 general

tokyo, Wednesday, 16 April 2025.
tokyo stocks declined, with the nikkei average closing down 1.01% at 33,920.40 yen. investor sentiment soured after asml holding, a key semiconductor equipment manufacturer, reported disappointing financial results. the market was already uneasy due to us-china trade tensions and their potential impact on semiconductor companies. the nikkei’s fall temporarily exceeded 600 yen. nvidia’s ai chip export restrictions added to the negative pressure. analysts are closely watching tsmc’s upcoming earnings report amid growing concerns about the sector’s performance.

semiconductor sector under pressure

Semiconductor-related stocks, including Advantest and Tokyo Electron, faced significant selling pressure [1]. Tokyo Electron shares closed at 19,690 yen, a decrease of 300 yen or 1.50% [4]. This decline was triggered by nvidia’s announcement of incurring costs due to us export restrictions on ai chips designed for china [1]. The news sparked concerns about nvidia’s future performance, leading to a sell-off in semiconductor stocks during after-hours trading, which then extended to the tokyo market [1].

asml’s disappointing results amplify concerns

Adding to the negative sentiment, asml holding’s first-quarter earnings report revealed a substantial slowdown in new orders compared to the previous quarter [1]. This further fueled the sell-off in Advantest, and disco also experienced accelerated declines as its earnings announcement approaches on april 17 [1]. Investors are increasingly wary of semiconductor companies’ earnings, particularly with tsmc scheduled to release its financial results on april 17 [1].

broader market impact and mixed performance

The tokyo stock price index (topix) also experienced a decline, falling 0.61% to close at 2498.03 [1]. The jpx prime 150 index similarly decreased by 0.50%, ending at 1096.71 [1]. Trading volume on the tokyo prime market amounted to approximately 3.8316 trillion yen, with 1.645 billion shares traded [1]. Declining stocks outnumbered advancers, with 941 issues falling, 643 rising, and 53 remaining unchanged [1]. Fast retailing, softbank group, terumo, and nitto denko were among the notable decliners, while kddi, chugai pharmaceutical, secom, and eisai saw gains [1].

china’s gdp growth fails to boost sentiment

Despite china’s gdp for january-march growing by 5.4% year-on-year, exceeding market expectations of 5.0%, it failed to alleviate concerns [1]. The ongoing trade tensions and export restrictions between the us and china continue to cast a shadow over the chinese economic outlook [1]. The shanghai composite index showed weakness, impacting china-related stocks in tokyo, such as fanuc, which also experienced declines [1]. Investors remain cautious, anticipating a potential cooling of the chinese economy due to us-china trade disputes [1].

market outlook and investor strategy

The nikkei average’s trading range has narrowed compared to the previous week, indicating a potential stabilization [1]. Some investors are taking advantage of lower prices to buy on dips, viewing the market as having regained some composure [1]. Retail stocks like nitori hd and aeon, along with game and entertainment stocks such as konami group and toho, which are perceived to be less vulnerable to trump’s tariffs, saw some buying interest [1]. Pharmaceuticals and construction stocks also showed positive performance [1]. According to toyo securities strategist ryuta otsuka, the nikkei may struggle around the 34,000 yen level [7].

Bronnen

stock decline semiconductor performance