FX168 Financial News Agency (Asia Pacific) - On Wednesday, October 16th, the Japanese stock market fell, ending a four-day consecutive trading rally, mainly dragged down by chip manufacturers SK Hynix and Samsung Electronics, due to the dim outlook released by ASML Holding.

As of the close, the Nikkei 225 index fell 1.83%, or 730.25 points, to close at 39,180.30 points. Prior to that, it had broken through 40,000 points on the previous trading day, reaching a three-month high.

The broader Topix index fell 1.21% to 2,690.66 points, with telecom company NTT rising 0.82%, providing the biggest support for the index. #JapaneseMarket#

The insurance sector rose 0.35%, becoming the best performing sector among the 33 industry sub-indices on the Tokyo Stock Exchange.

Topix's growth stock index fell 1.75%, which includes strong performing technology stocks; while the value stock index, tracking slower but higher dividend paying stocks, fell 0.67%.

Semiconductor manufacturing equipment manufacturer Tokyo Electron Ltd. unsponsored ADR closed down 9.19%, following a 5.3% overnight decline in the PHLX Semiconductor Index.

Technology investment company SoftBank Group fell 3.97%, and semiconductor equipment manufacturer Lasertec plummeted 13.44%.

Major Wall Street indices closed lower on Tuesday, with the tech-heavy Nasdaq Index falling 1% due to pressure on chip stocks.

ASML Holding's stock suffered its largest decline since 1998, the chip manufacturing equipment giant has lowered its sales forecast for 2025 from 40 billion euros to 35 billion euros, due to weak demand outside of artificial intelligence. At the same time, there are reports that the Biden administration is considering restricting the sale of advanced AI processors to certain countries.

Japanese Deputy Prime Minister and Cabinet Secretary Katsuhiko Otake stated that the upcoming stimulus package will exceed last year's budget of 13 trillion yen, a sentiment echoed by former Prime Minister Shizo Abe.

Bank of Japan policy maker Seiji Adachi warned that prematurely raising interest rates would face risks, including a strengthening yen and weak global demand, but he stated that the Japanese economy is meeting the conditions to begin normalizing ultra-easy policies.

In terms of data, the Cabinet Office announced a 3% decline in machinery orders in August, with core orders falling by 1.9%. The Ministry of Economy, Trade and Industry stated that retail sales grew by 3.1%, reaching 13.81 trillion yen, exceeding expectations.

In corporate news, JDC reported a quarterly profit of 1.73 billion yen as of August 31, rebounding from a loss of 0.463 billion yen in the same period last year. Earnings per share rose from a loss of 5.56 yen to 21.10 yen.

In addition, Takara invested in a Japanese juice company to secure the supply of its Chu-Hi beverage. Its subsidiary, Takara Shuzo International, acquired Tsukiji Ohta and Ohta Foods Market, strengthening its fresh seafood supply chain in the United States and Asia.