Japan Stocks Fall, Chip Firms Extend Declines on DeepSeek Rout
Japanese stocks slid, with chip-related shares extending Monday’s declines after concern over Chinese artificial-intelligence startup DeepSeek set off a selling spree in US tech shares.
The Topix Index fell 0.6% to 2,741.12 as of 9:17 a.m. Tokyo time
Nikkei dropped 1.4% to 39,010.10
Hitachi Ltd. contributed the most to the Topix Index decline, decreasing 5.3%. Out of 2,119 stocks in the index, 1,184 rose and 754 fell, while 181 were unchanged.
A stronger yen may also weigh on exporters after Japan’s currency rose as much as 1.5% against the dollar Monday to 153.72. It weakened slightly on Tuesday morning.
The market is likely to start weaker, as investors price in DeepSeek and the yen appreciation, said Ryuta Otsuka, a strategist at Toyo Securities Co. “After the initial reaction, the market may rebound” as it enters earnings season, he said.
The low-cost AI model offered by DeepSeek that rivals those of US companies raised concerns whether high valuations of firms including Nvidia Corp. can be justified. Nvidia shares erased $589 billion from its market capitalization — the largest in history, while a closely watched gauge of chipmakers tumbled more than 9%.
In Tokyo, Nvidia tester supplier Advantest, as well as Disco Corp. both extended declines, losing about 9%.
Source : Bloomberg
