Tokyo’s Nikkei Index Records Largest Drop in Over Three Years
Tokyo, Japan – Tokyo’s key Nikkei index experienced its biggest drop in more than three years on Friday, following reports of Israel carrying out strikes on Iran and after chip giant TSMC spooked tech stocks.
The benchmark Nikkei 225 index closed down 2.66 percent, or 1,011.35 points, at 37,068.35, marking its largest point decline since February 2021.
The broader Topix index also fell by 1.91 percent, or 51.13 points, to 2,626.32 yen.
The tech sector took a hit as major high-tech and semiconductor shares plummeted, with Taiwanese chip titan TSMC’s shares dropping by 4.9 percent on Wall Street after indicating “weakening macroeconomic conditions” and softening demand.
Semiconductor firms bore the brunt of the losses, with Tokyo Electron plunging 8.74 percent, Advantest losing 4.38 percent, TDK dropping 3.37 percent, and SoftBank Group sinking 2.89 percent.
The market was further weighed down by the rising tensions in the Middle East after reports of explosions in Iran’s central province of Isfahan. Uncertainty surrounding the situation between Israel and the Islamic Republic added to market concerns.
Despite these developments, the dollar remained stable at 154.37 yen.
Major shares in Tokyo, including Sony Group, also saw declines. Sony lost 1.80 percent following reports of potential joint bids with Apollo Global Management for film and TV giant Paramount Global.
Overall, Asian shares across the board were down, with semiconductor shares particularly hard hit. Investors are closely monitoring the situation in the Middle East and its potential impact on global markets.
