Japan’s Nikkei drops 2% on global chip sell-off and surging yen
Japan’s Nikkei share average fell sharply, driven by a global sell-off in chip-related stocks and a strengthening yen. The Nikkei (NI225) dropped by the midday break, dipping earlier, the lowest since July. This fall came just a week after it reached a record high.
Volatility spiked to its highest level since May. Chip-making-equipment giant Tokyo Electron (8035) was the biggest drag on the Nikkei. Other major decliners included Disco (6146) and Screen Holdings (7735).
Read to find out why Japanese yen dipping here.
Disclaimer:
The current market scenario underscores the vulnerability of the Nikkei to both global tech sector trends and currency fluctuations. As the earnings season kicks off next week, market participants are advised to keenly watching for performance differentiation among stocks, particularly in the tech and export-oriented sectors.
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