Japan's Nikkei 225 declined on Tuesday, weighed down by a broad sell-off in semiconductor-related heavyweights.
The downturn was driven by Samsung Electronics' disappointing chip forecast, which cast a shadow over regional technology stocks despite the South Korean giant's earlier announcement of a significant jump in expected operating profits.
Investors appeared to prioritize caution over the positive earnings catalyst, leading to a rotation out of growth-oriented tech names.
The selling pressure was not confined to Japan.
South Korean shares led the regional decline, with major chipmakers dragging the local index lower.
The market reaction suggests that traders are interpreting Samsung's guidance as a signal of potential headwinds in the semiconductor cycle, outweighing the immediate benefit of the profit forecast.