Japan's Nikkei extends losses as cautious chip outlook weighs on technology stocks

Japan's Nikkei 225 Index fell 0.33% to close at 63,082 on Monday, extending losses from the previous session. Market sentiment weakened after memory chipmaker Kioxia Holdings issued a cautious earnings outlook, raising concerns that growth in AI-driven demand may be slowing.

Kioxia shares plunged 15.8% after the company forecast operating profit of '2 trillion for the December quarter, only slightly higher than the previous quarter's '1.99 trillion. This indicated slower earnings growth compared with recent quarters.

Screen Holdings also dropped 19% after keeping its full-year forecast unchanged, despite reporting record order intake and continued strength in the semiconductor equipment market.

Other technology stocks also declined, with Ibiden falling 3.8%, Taiyo Yuden losing 3% and SoftBank Group slipping 1.6%.