Japan’s Nikkei falls more than 4% as chip stocks extend global tech selloff
Key Takeaways
- •The Nikkei fell more than 4% on Tuesday and closed at its lowest level in two months.
- •Semiconductor and AI-related shares led the decline after losses on Wall Street.
- •Kioxia, Tokyo Electron and Advantest posted steep drops as investors reassessed valuations before major technology earnings.
- •The selloff was part of a broader global tech downturn that weighed on Japanese chip stocks.
- •The move showed how declines in U.S. technology shares can quickly affect Asian markets.
Japan's Nikkei index fell more than 4% on Tuesday to a two-month low, pressured by a sharp selloff in semiconductor and artificial intelligence-related stocks after losses on Wall Street.
Major chipmakers including Kioxia, Tokyo Electron and Advantest posted steep declines as investors grew cautious and reassessed valuations ahead of major technology earnings. The weakness in these names mattered because they carry heavy weight in Japan’s equity market and are closely tied to sentiment around the global AI and chip supply chain.
The move added to a broader global tech selloff that weighed on semiconductor shares in Japan. The Nikkei's drop left the benchmark at its lowest level in two months, underscoring how quickly declines in U.S. technology stocks can feed through to Asian markets when chipmakers and other high-growth names move in the same direction.
Japan's Nikkei plunges over 4% to a two-month low as a global tech selloff hits semiconductor stocks.