Nikkei slumps sharply as tech sell-off spreads

SoftBank Group fell 6.47% Read more at The Business Times.

By America Pulse · Based on reporting from businesstimes.com.sg

Japan’s Nikkei 225 tumbled sharply on Wednesday, August 19, as a wave of selling in U.S. technology stocks spilled over into Asian markets.

Nikkei and Topix Slide

In early Tokyo trading the benchmark index dropped 2.97 percent to 65,459.71, while the broader Topix eased 2.72 percent to 4,027.56. The decline mirrored movements on Wall Street, where major U.S. indexes finished lower after hopes for a Middle East peace agreement faded, curbing investors’ appetite for risk.

Global Bonds and Yields

Across the globe, oil prices moved higher and sovereign bond prices slipped, pushing yields up sharply. The Philadelphia SE Semiconductor Index, which tracks U.S. semiconductor shares, fell 5 percent, underscoring the pressure on the technology sector. Sony Financial Group analysts noted that rising long‑term interest rates have amplified concerns that growth‑oriented stocks are overvalued, and that the slide in tech equities, especially semiconductors, pulled the broader indices down.

Tech Sector Leads Decline

On the Nikkei floor, only 46 stocks advanced compared with 178 that fell and one that held steady. The most pronounced losses came from chipmaker Kioxia Holdings, which shed 10.25 percent, followed by Furukawa Electric down 10.10 percent, and Pan Pacific International slipping 9.75 percent. SoftBank Group, a leading investor in artificial‑intelligence ventures, also retreated, losing 6.47 percent.

Stock Movers on Nikkei

Despite the broad sell‑off, a handful of companies posted gains. Marketplace app Mercari rose 5.28 percent, making it the top performer. Cosmetics giant Shiseido added 2.56 percent, while Otsuka Holdings climbed 1.91 percent. These modest advances stood in stark contrast to the heavy losses elsewhere on the exchange.

The episode highlights how tightly linked Japanese equities have become to U.S. market dynamics, particularly in the technology arena. As long‑term rates continue to climb and geopolitical optimism wanes, analysts expect further volatility for growth‑focused stocks across both continents. Reuters reported.

Source: businesstimes.com.sg · 2026-08-19