The Nikkei Average plunged sharply, ending the session at 62,364.92 yen, down 3.95% from the previous business day. AI and semiconductor-related stocks were sold off amid caution over the previous day's decline in US semiconductor shares and intensifying competition in semiconductor memory driven by the rise of Chinese players. The index at one point fell 4.6% to 61,923.60 yen, dipping below the 62,000 yen level for the first time since May 22. Heavyweight index contributors SoftBank Group and Tokyo Electron tumbled, while Kioxia Holdings hit its daily limit down. On the other hand, some domestic demand stocks held firm, with 11 sectors including retail and air transport advancing, fueling views that a rotation from growth to value stocks is continuing. Jun Ishikane of Mitsubishi UFJ Asset Management noted that the rise of Chinese players has become a pretext for selling, intensifying adjustment pressure, and expressed the view that the medium-term stock rally has paused.
Kioxia Holdings Corporation
TE Connectivity Ltd
SoftBank Group Corp.