Nikkei 225 Drops 2% Amid Global Chip Stocks Selloff, Japan's Trade Surplus Expanded in June

Akira Ito
18 Jul, 2024
Tokyo

The global tech stock selloff extended to Japan amid growing worries about rising trade tensions between the U.S. and China. 

The Nikkei 225 stock average plunged more than 2%, and the broader Topix index declined 1.5% amid reports that the U.S. is looking to expand trade restrictions and impose tougher sanctions on companies exporting critical semiconductor equipment to China. 

Moreover, Donald Trump, a U.S. presidential candidate and convicted felon, said that Taiwan should be paying for its defense as tensions simmer between China and Taiwan. 

On the economic front, Japan's trade surplus unexpectedly rose in June after exports rose faster than imports. 

Japan's trade surplus expanded to 224.04 billion yen in June from 36.5 billion yen in the corresponding month a year ago, the Ministry of Finance reported Thursday. 

Japan recorded a trade surplus for the second month of this year, after exports rose 5.4% and imports advanced 3.2% from a year ago, respectively. 

Exports increased for the seventh month in a row due to strong demand from the U.S. and China, and the weaker yen restricted the growth in imports. 

For the first six months, Japan posited a trade gap of 3.23 trillion yen. 

 

Japan Stock Movers 

The Nikkei 225 stock average declined 2.3% to 40,153.18, and the Topix index dropped 1.5% to 2,872.61. 

Tokyo Electron dropped 8.8% to ¥30,470.0, Lasertec declined 6.3% to ¥29,740.0, Screen Holdings fell 8.6% to ¥13,560.0, and Disco Corp. plunged 8.8% to ¥55,260.0. 

Honda Motor Company declined 2.9% to ¥1,665.0, and the vehicle maker priced its secondary offering at a 3% discount to Wednesday's closing price. 

On the upside, Kansai Electric Power, Nichirei, Nitori Holdings, and Asahi Group added as much as 3%.