Nikkei Average continues to decline, with semiconductor stocks being sold off temporarily after TSMC's earnings report.

October 17, 2024, 3:36 PM GMT+9 (excerpt)

The Nikkei Average on the Tokyo Stock Market closed at 38,911.19 yen, down 269.11 yen from the previous trading day. Selling of semiconductor-related stocks once again restrained the upside of the Nikkei Average. Despite some resistance to the decline following the earnings announcement of TSMC (2330.TW), the world's largest semiconductor foundry, the market softened again towards the close.
The Nikkei Average opened slightly higher by 83 yen compared to the previous trading day, reaching a high of 39,299.74 yen, up 119 yen. Due to a significant drop of over 730 yen the previous day, buying interest was easily triggered in anticipation of a self-rebound. After an initial round of buying, the gains gradually diminished and turned negative. Following TSMC's earnings announcement in the late afternoon session, the decrease in losses narrowed, yet failed to rise back to positive territory, leading to a lower close for the Nikkei Average.
TSMC's earnings report for the third and fourth quarters, with a net profit of 325.3 billion Taiwanese dollars (1.011 billion US dollars), increased by 54%, exceeding market expectations. The demand for artificial intelligence (ai) semiconductors continues to expand.