Tokyo Stocks Dive on Selling of AI, Chip Names

Tokyo, Aug. 19 (Jiji Press)–Tokyo stocks tumbled Wednesday due chiefly to selling of issues related to artificial intelligence and semiconductors, with the benchmark Nikkei 225 stock average briefly giving up more than 2,300 points. The index of 225 major issues listed on the Tokyo Stock Exchange’s Prime section finished the day down 2,134.31 points, or 3.16 pct, from Tuesday, at 65,326.42. Following an overnight decline in U.S. technology stocks, a broad range of sectors came under selling pressure, particularly AI- and chip-related shares. “Persistently high global interest rates are fueling concerns about the financial stability of U.S. tech companies,” an official at a major securities firm said. Rising crude oil prices, driven by uncertainty linked to the situation in the Middle East, also weighed on investor sentiment. “Overseas investors appeared to have placed sell orders in the morning, while domestic investors returning after Japan’s Bon summer holiday period were also reluctant to step in and buy,” an official at a Japanese bank said. A sharp decline in South Korea’s benchmark KOSPI stock index during Tokyo trading hours further pressured Japanese AI and semiconductor stocks. Memory chip maker Kioxia Holdings and semiconductor-making equipment producer Tokyo Electron fell some 12 pct and 3 pct, respectively. Meanwhile, some domestically oriented stocks attracted cyclical buying, with pharmaceutical and other shares showing resilience. END [Copyright The Jiji Press, Ltd.]