Nikkei Average Falls on Chip Share Rout

Tokyo, July 16 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly tumbled more than 2,200 points on Thursday as semiconductor-related issues took a beating. The index of 225 major issues listed on the Tokyo Stock Exchange’s Prime section finished the day at 66,835.54, down 1,915.97 points, or 2.78 pct, from Wednesday. Chip-linked names tracked declines in their U.S. counterparts Wednesday, with memory chip maker Kioxia Holdings and test device maker Advantest shedding 15.03 pct and 5.93 pct, respectively. The drop in South Korea’s chip-heavy KOSPI index also dampened investor sentiment. “The global decline in tech stocks has spread to the Tokyo market,” an official at a Japanese securities house said. “Foreign investors may be reducing their exposure to semiconductor- and artificial intelligence-related stocks while increasing holdings of lagging blue-chip stocks such as automaker shares.” Major chip foundry Taiwan Semiconductor Manufacturing Co. announced record quarterly earnings during Tokyo trading hours, but this did not significantly sway the Nikkei index. “Market expectations have risen considerably, and stock prices have become less responsive even to strong earnings announcements,” an official at a major securities company said. END [Copyright The Jiji Press, Ltd.]