Tech Rout Drags Tokyo Lower as Semiconductor Stocks Tumble; Cybersecurity and IT Services Buck the Trend — October 22, 2026

Market Overview

Tokyo equities faced a sharply divided session on October 22, 2026, as a broad sell-off in semiconductor and technology hardware names weighed heavily on the Nikkei 225. While defensive and infrastructure-linked sectors held firm — with mining, services, and transportation posting solid gains — the technology and nonferrous metals spaces suffered steep losses, pointing to a rotation away from high-growth, capital-intensive names. The day’s price action underscored a clear bifurcation between software-driven IT services, which rallied, and chip-adjacent hardware plays, which came under significant pressure.

Top Gainers

The session’s standout performers were concentrated in IT services and cybersecurity, with two names leading the Nikkei 225 higher by a wide margin:

• Trend Micro (4704) surged +8.69%, topping the index’s leaderboard. The cybersecurity specialist’s sharp advance suggests renewed investor appetite for software and security names amid broader technology sector turbulence.
• SHIFT Inc. (3697) followed closely with a gain of +8.57%, reflecting continued confidence in quality assurance and IT consulting services.
• BayCurrent Inc. (6532) and Nomura Research Institute (4307) added +3.76% and +3.41% respectively, reinforcing the theme that domestic IT services and management consulting are attracting flows as investors seek shelter from hardware volatility.
• NEC Corp. (6701) and Fujitsu (6702) both rose over +3%, lending breadth to the IT services rally and suggesting larger-cap systems integrators also benefited from the day’s rotation.
• Outside of technology, INPEX Corporation (1605) gained +3.08%, consistent with the mining sector’s outperformance, while Tokio Marine Holdings (8766) advanced +2.24%, reflecting strength in the insurance space.

Top Decliners

The sell-off in semiconductor and chip-equipment names was severe, with several marquee stocks recording double-digit losses:

• Resonac Holdings (4004) led declines with a steep drop of -11.16%, followed by IBIDEN Co. (4062) at -9.49% and SCREEN Holdings (7735) at -8.83% — all names with significant semiconductor supply chain exposure.
• Tokyo Electron (8035) fell -6.99% and Lasertec Corp. (6920) shed -6.34%, adding to the pressure across chip equipment makers.
• SoftBank Group (9984) declined -6.86%, a notable move for the technology investment conglomerate, while Furukawa Electric (5801), SUMCO Corp. (3436), and Fujikura (5803) all posted losses exceeding -6%, hit by weakness in nonferrous metals and semiconductor materials.

Sector Snapshot

Mining (+3.08%) was the clear sector leader, followed by Services (+1.29%), Gas (+1.22%), and Railways & Buses (+1.20%) — a cluster of domestic, defensive, and infrastructure-oriented industries that attracted capital as investors reduced exposure to global cyclicals. Insurance (+0.98%) and Land Transportation (+0.93%) also finished in positive territory.

On the downside, Nonferrous Metals (-5.23%) suffered the worst sectoral losses by a wide margin, consistent with the heavy selling in semiconductor materials and cable names. Electrical Equipment (-2.63%), Machinery (-2.43%), and Banks (-2.46%) were also among the day’s notable laggards. Chemicals (-1.92%) and Telecommunications (-1.48%) added to the list of underperformers, suggesting broad caution around capital-intensive and rate-sensitive sectors.

Source: Tokyo Stock Exchange data | Japan Economic News