Japan Stocks Shrug Off Yen Shock, But Kioxia Signals More Pain Ahead

Japan's Nikkei 225 barely budged Tuesday despite a historic joint US-Japan intervention to prop up the yen. But Kioxia Holdings' earnings miss suggests the real pain has not landed yet.

Tokyo and Washington intervened to halt months of yen weakness, and Kioxia posted disappointing guidance days later. Markets have absorbed both events calmly so far, but the underlying risks, a possible BOJ rate hike and a currency still primed to strengthen, remain unresolved.

A Muted Reaction So Far

The Nikkei 225 slipped slightly, 0.6% to around 63,300 on Tuesday. That extended Monday's 1.4% drop.

Both moves look mild next to the selloff traders feared. Tokyo and Washington had just confirmed their first coordinated yen-buying operation in decades.

Kioxia Holdings actually rose slightly on Tuesday. But others in Japan, like SoftBank Group and Advantest, declined as chip stocks led the pullback.

The move follows Kioxia's 65% plunge from June highs. That slide had already fueled speculation over shareholder payouts before Friday's earnings.

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