Japan's Nikkei reverses gains as Nvidia shares plunge

By Reuters News

By Junko Fujita

- Japan's Nikkei share average reversed early gains to end lower on Thursday as technology stocks lost ground with the Nasdaq futures extending losses, while Nvidia < NVDA.O> shares plunged in after-hours trading.

Nvidia's stock slid more than 8% in extended trading after the Wall Street Journal first reported that the company was preparing to fire CEO Jensen Huang.

Nvidia's board is meeting to decide whether to oust Huang, a source familiar with the matter told Reuters, as the world's dominant supplier of AI chips grapples with reports of two extramarital affairs involving its longtime leader.

The Nikkei .N225 fell 0.7% to 60,819.836, after rising as much as 0.88% earlier in the session. The broader Topix .TOPX edged up 0.2% to 3,937.33.

Nasdaq futures were nearly 1% lower in Asia.

"Market players anticipated Wall Street would fall later in the day, with Nasdaq futures falling in Asian trading," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

"And investors weighed Nvidia's sell-off in after-hours trading."

In Tokyo, Nvidia-linked suppliers Advantest 6857.T and Ibiden 4062.T fell 4.64% and 8.32%, respectively.

Ibiden was the worst percentage loser on the Nikkei.

Memory-chip maker Kioxia 285A.T gave up early gains to end 2.83% lower, while chip-making equipment maker Tokyo Electron 8035.T narrowed gains to end 0.35% higher.

Technology investor SoftBank Group 9984.T also gave up gains to fall 3.04%.

Audio and camera maker Sony Group 6758.T rose 1.93% to become the biggest source of the Topix's gains. Japan Tobacco 2914.T rose 7.8%.

Of the 225 components on the Nikkei, 153 stocks rose and 72 fell.

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