Nikkei Plunges, Tech Stocks Plunge
Japanese stocks closed sharply lower on Friday (July 17th), dragged down by heavy selling in the technology and semiconductor sectors. The Nikkei 225 index plunged 4.03% to 64,140, while the Topix index fell 2.72% to 3,919.
Both major Japanese indexes recorded their lowest closing levels in more than a month. Selling pressure intensified as global chip stocks weakened, particularly as investors became concerned about the massive AI-related spending and the perceived overvaluation of tech stocks.
Technology and AI stocks were the main drags on the Japanese market. Kioxia Holdings plunged 16.1%, Tokyo Electron fell 8.1%, SoftBank Group fell 9%, Advantest fell 7.2%, and Taiyo Yuden fell 11.9%.
Market sentiment was also further weighed down by the escalating conflict between the United States and Iran. These tensions have pushed oil prices higher, rekindling concerns about inflation and the risk of higher interest rates.
This week, the Nikkei 225 fell 6.4%, while the Topix fell 2.9%. As a result, pressure on Japanese technology stocks could persist if the global chip sell-off persists. However, if oil prices stabilize and AI valuation concerns begin to ease, there could still be a potential technical rebound. (asd)
Source: Newsmaker.id
