Japan's Nikkei reverses gains as Nvidia shares plunge

What happened

Japan’s Nikkei fell 0.7% on Thursday after reversing early gains, while the broader Topix rose 0.2%. Nvidia shares slid more than 8% in after-hours trading after a report said the company was preparing to fire CEO Jensen Huang; a source said its board was meeting to decide whether to oust him.

Confirmed

Global impact / market context

Nvidia’s steep after-hours decline coincided with weaker Nasdaq futures and losses among Japanese chip-related shares. Because some suppliers serve Nvidia, falling investor demand for those shares can lower their market value; Advantest and Ibiden fell, as did memory-chip maker Kioxia.

Analyst inference

Japan’s market response was mixed: the Nikkei fell, but the broader Topix edged higher. Advantest and Ibiden dropped, Kioxia gave up early gains, while Tokyo Electron still ended slightly higher. Nasdaq futures were nearly 1% lower in Asian trading.

Confirmed

What to watch

1. Watch for an update on Nvidia’s board meeting and whether it decides to remove Huang; the article reports no decision, and the leadership question could shape Nvidia share trading. Analyst inference
2. Check whether weakness in Nvidia and Nasdaq futures continues to pressure Japanese chip suppliers, whose share prices can fall if investors expect weaker demand or earnings. Analyst inference
3. Compare subsequent moves in the Nikkei and Topix: the Nikkei fell while the Topix rose, and a widening split could indicate technology shares are driving index weakness. Analyst inference

Evidence

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