Asia stocks: Nikkei falls from records, tech on edge ahead of TSMC earnings

Most Asian stocks moved in a flat-to-low range on Thursday, with Japan’s Nikkei index falling from record highs, while technology shares dithered ahead of key earnings from chipmaker TSMC.

South Korean shares clocked some gains after the Bank of Korea left interest rates unchanged, as widely expected, and signaled a protracted hold on rates.
Regional markets took a weak overnight lead-in from Wall Street, as losses in banks and tech shares pulled Wall Street indexes further off record highs.

S&P 500 Futures fell slightly to 6,963.50 points by 21:12 ET (02:12 GMT).

Nikkei falls from record highs as stimulus bets cool
Japan’s Nikkei 225 index was the worst performer for the day, losing 0.9% as it retreated from a rash of recent record highs. The broader TOPIX index, however, rose 0.4% and hit a record high.

The Nikkei was pressured by losses in tech, which declined tracking overnight losses in U.S. markets.

Optimism over more fiscal spending by the Sanae Takaichi government– which had fueled a Japanese stock rally earlier this week– also cooled amid growing questions over just how much headroom the government had to dole out more spending.

Reports that Takaichi planned to declare a snap election by as soon as early-February had sparked bets on increased stimulus spending, especially if her ruling coalition gains a greater foothold in parliament.

But they also triggered turbulence in Japanese bond markets, with 10-year yields racing to their highest levels in this century amid concerns over stretched fiscal spending in the country.

Asia tech on edge as TSMC earnings loom
Tech-heavy Asian bourses moved in a tight range ahead of closely watched fourth-quarter earnings from TSMC (NYSE:TSM), the world’s largest contract chipmaker.

Hong Kong’s Hang Seng was flat, while South Korea’s KOSPI rose marginally.

TSMC (TW:2330) fell 1.5% in Taipei trade before its fourth-quarter earnings, which are due later in the day.

While the chipmaker is widely expected to clock another quarter of bumper growth, investors were focused squarely on its outlook for 2026, amid some questions over the artificial intelligence industry.

TSMC is widely viewed as a bellwether for AI-driven chip demand, given its dominance in the semiconductor industry. The company is a key supplier to NVIDIA Corporation (NASDAQ:NVDA).

Broader Asian markets moved in a tight range, as heightened geopolitical tensions across the globe also weighed. Markets were wary of any U.S. intervention in Iran and Venezuela.

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved in a tight range, steadying after a whipsaw session on Wednesday. Both indexes were pulled off multi-year highs after China tightened rules on margin financing trades, aiming to discourage speculation and reduce stock market risk.

Singapore’s Straits Times index fell 0.3%, while Australia’s ASX 200 rose 0.2%.

Futures for India’s Nifty 50 index rose slightly, with the index nursing several days of losses amid growing concerns over the Indian economy and more U.S. trade tariffs on New Delhi.