Nikkei Weakens, Japanese Chip Stocks Under Pressure
Newsmaker.id - The Japanese stock market weakened again on Wednesday. The Nikkei 225 index fell 0.3% to below 68,100, while the Topix index weakened 0.8% to around 4,030. This decline extended pressure from the previous session after the Japanese market followed Wall Street's overnight decline, which was dragged down by a sell-off in semiconductor stocks.
The main pressure came from the technology sector, particularly after sentiment in global chip stocks worsened. On Wall Street, the Nasdaq fell sharply due to concerns about the sustainability of the artificial intelligence (AI) rally, while the Philadelphia Semiconductor Index fell 4.65%. Investors also weighed on news that DeepSeek was developing its own AI chip, which sparked fresh concerns about competition in the global semiconductor industry.
In Japan, several large-cap stocks weighed on the index. Tokyo Electron fell 2.7%, Taiyo Yuden fell 3%, Fujikura fell 1.4%, Ibiden Co. fell 3.3%, and Mitsubishi Heavy Industries fell 3.4%. This decline indicates that pressure is not limited to chip stocks, but has also spread to industrial and manufacturing stocks, which had previously enjoyed technology optimism.
Market sentiment has become increasingly fragile after tensions in the Middle East escalated. The United States launched another attack on Iran and revoked its oil sales permits following attacks on three tankers in the Strait of Hormuz. This situation sent oil prices soaring, the US dollar strengthening, and global markets entering a cautious mode as investors reconsider the risks of prolonged inflation and high interest rates. (CP)
