Japan's Nikkei share average reversed early gains to edge lower, dragged down by a sharp fall in SoftBank Group following Oracle's disappointing forecast. The broader Topix index also declined modestly amid mixed performances in technology and banking sectors.
In Tokyo on December 11, Japan's stock market shifted from early gains to a slight decline. The Nikkei share average (.N225) fell 0.1% to 50,554.10, erasing an initial 0.5% rise during the session. The broader Topix index (.TOPX) dropped 0.17% to 3,383.12.
The downturn was led by SoftBank Group (9984.T), which tumbled 5.17% in tandem with Oracle (ORCL.N)'s more than 11% plunge in after-hours trading. Oracle's sales and profit outlook fell short of Wall Street expectations. Earlier this year, SoftBank, Oracle, and OpenAI announced plans for U.S.-based AI data centers under their ambitious Stargate project, raising market worries about its progress.
Shuutarou Yasuda, market analyst at Tokai Tokyo Intelligence Laboratory, noted: "The Nikkei opened higher, tracking overnight Wall Street gains, but the advances were wiped out by SoftBank's decline. Oracle's earnings have sparked concerns over whether the data center project involving SoftBank will proceed as planned."
Overnight, Wall Street closed higher after the Federal Reserve delivered a 25 basis-point rate cut as anticipated. Investors anticipated further easing ahead, though the U.S. central bank indicated a pause on additional reductions for now.
In Japan, other technology shares weakened, with chip equipment maker Tokyo Electron (8035.T) down 0.75%, silicon wafer producer Shin-Etsu Chemical (4063.T) off 1.83%, and robot maker Fanuc (6954.T) losing 1.48%. Bank stocks advanced, as Mizuho Financial Group (8411.T) gained 0.53% and Sumitomo Mitsui Financial Group (8316.T) rose 0.62%. Bucking the trend, chip-testing equipment firm Advantest (6857.T) surged 4.49%, while printing company Toppan Holdings (7911.T) climbed 5.3% to become the Nikkei's top gainer.
Of more than 1,600 stocks on the Tokyo Stock Exchange's prime market, 25% rose, 70% fell, and 4% were unchanged. The value share index (.TOPXV) was flat, while the growth share index (.TOPXG) slipped 0.32%.
