Nikkei drops 1,900 points as chip stocks tumble
Tokyo tech shares slid sharply on geopolitical risks and yield concerns, with semiconductor names leading the decline.
The Nikkei Stock Average fell more than 1,900 points on September 11, marking a second consecutive day of losses. The decline was driven by a broad risk-off sentiment triggered by rising U.S. Treasury yields and escalating Middle East tensions.
Investors adopted a cautious stance ahead of key U.S. inflation data and upcoming central bank decisions. Semiconductor-related equities suffered the heaviest hits, dragging down the broader index despite some resilience in shipping and mining sectors.
Semiconductor equities lead market losses
Selling pressure concentrated among high-profile technology firms in the Tokyo Stock Exchange Prime Market. Kioxia Holdings recorded the largest absolute drop, losing 4,740 yen to close at 53,350 yen. This sharp decline reflected intense volatility in the memory chip sector.
Advantest fell 2,700 yen to 31,220 yen, while Ibiden dropped 1,545 yen to 19,135 yen. Resonac Holdings also declined significantly, shedding 1,705 yen to reach 14,300 yen. These moves indicate a broad retreat from growth-oriented tech stocks across the index.
Macro factors drive risk aversion
Rising long-term U.S. Treasury yields posed a direct headwind for Japanese equities. The previous day’s hotter-than-expected Producer Price Index reinforced inflation concerns, limiting the appeal of high-duration assets. This macro environment suppressed buying interest in Tokyo.
Geopolitical risks further weighed on sentiment as crude oil prices surged. Reports of reduced Saudi production and ongoing regional conflict increased energy cost pressures. Market participants worried that higher fuel prices would squeeze corporate margins and consumer spending.
Market awaits policy clarity
Traders refrained from aggressive positioning ahead of the U.S. Consumer Price Index release and the Federal Reserve’s upcoming meeting. The Bank of Japan’s policy decision next week added to the uncertainty, encouraging a wait-and-see approach among institutional investors.
While the yen weakened slightly to around 154.40 against the dollar, this did not stabilize the equity market. According to reports from GN stocks/chips, the currency move was insufficient to offset the broader sell-off in technology and industrial sectors.
