TOKYO: Japan’s Nikkei share average slumped on Tuesday as investors shed semiconductor-sector stocks after the US government said it would further restrict artificial intelligence (AI) chip and technology exports.
The Japanese market, coming off a holiday on Monday, was also catching up to the global equities selloff after strong US jobs data on Friday spurred market participants to contemplate the potential for no Federal Reserve interest rate cuts this year.
The Nikkei index ended the morning session down 1.84% at 38,469.58.
It had dropped as much as 2.2% to 38,332.91, its lowest since Dec. 2, as selling accelerated after the benchmark tumbled through its 200-day moving average of 38,696. The broader Topix fell 1.27%.
The Nikkei is headed for a fourth straight day of declines, slumping about 4% since Jan. 7.
Japan’s Nikkei rises as tech shares gain
Japanese stocks, much like its global peers, were also weighed down by local government bond yields hitting fresh 14-year peaks, tracking the surge in US yields since the jobs data.
Adding to the air of caution is the release of US consumer inflation data on Wednesday as well as the start of the US earnings season. On the day, 184 of the Nikkei’s 225 components declined, while 40 rose and one was flat.
The biggest decliner in both percentage and index points terms was chip-testing equipment maker Advantest, an Nvidia supplier, which plunged 7.8%. Nvidia dropped 2% overnight.
Tech was the worst-performing Nikkei sector, sliding 2%. Japanese earnings reports also spurred some eye-catching moves.
Yaskawa Electric sagged 4.7%, while Ryohin Keikaku , owner of the MUJI stores, leapt 5.9% to be the Nikkei’s biggest percentage riser.
Energy shares also outperformed due to a rise in oil prices.
Refiner Inpex advanced 1.6%.
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