Indexes In Asia Struggled to Overcome Semiconductor Sector Sell-Off

Akira Ito
20 Jul, 2026
Tokyo

Indexes in South Korea and Taiwan retained a downward bias amid concerns over the AI trade and escalating tensions in the Middle East.

Japan's indexes plunged 4% on Friday and extended the previous week's losses to over 8% amid concerns over the AI trade and escalating tensions in the Middle East.

Japan's financial markets were closed on Monday for a public holiday, and benchmark indexes in South Korea, Taiwan, and India extended the previous week's losses amid a deepening global rout in semiconductor-related stocks. 

In Friday's trading, the Nikkei 225 Stock Average decreased 4.0%, the broader TOPIX fell 2.7%, and the Japanese yen closed at 162.38 against the U.S. dollar. 

Benchmark indexes in Tokyo extended the previous week's sharp losses between 5% and 8% amid rising concerns over the unsustainable level of elevated AI infrastructure spending and stretched valuations. 

Computer chipmakers and semiconductor equipment makers led decliners in Tokyo for the third consecutive week. 

Kioxia Holdings dropped 16% and extended its one-month loss to 50%; Tokyo Electron decreased 8% and plunged 10% in the previous one month of trading. 

The yield on 10-year Japanese government bonds held steady at 2.71% as oil prices surged for the third consecutive week. 

The Brent crude oil price rose 2.6% to $90.34 a barrel on escalating hostilities between the U.S. and Iran, and Iran declared that the ceasefire with the U.S. effectively had collapsed.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 4.0% to 64,141.12, and the broader TOPIX decreased 2.7% to 3,919.21. 

Tokyo Electron dropped 8.2% to ¥65,100.0, Advantest Corp. fell 7.2% to ¥27,505.0, and Lasertec Corp. plunged 9.7% to ¥41,890.0. 

Nippon Yusen KK advanced 3.0% to ¥5,706.0, Mitsui OSK Lines rose 1.6% to ¥5,609.0, and Kawasaki Kisen Kaisha Ltd. gained 3.3% to ¥2,723.50. 

Idemitsu Kosan Co. Ltd. decreased 1.7% to ¥1,241.0, ENEOS Holdings dropped 2.4% to ¥1,243.50, and Inpex Corp. fell 0.8% to ¥3,401.0.