Japan's Indexes Dropped 2% as Global Selloff In Semiconductor Stocks Intensified

Akira Ito
19 Aug, 2026
Tokyo

Japan's benchmark indexes declined for the second consecutive session on Wednesday, as the selloff in technology and semiconductor stocks intensified. 

The Nikkei 225 Stock Average decreased 3%, and the broader TOPIX dropped 3.1% as local stocks tracked losses on Wall Street overnight. 

The S&P 500 Index decreased 0.7%, and the tech-focused Nasdaq Composite declined 1.3%. 

The Brent crude oil price per barrel rose 0.5% to $91.49, increasing the cost of imported energy for Japan. Higher crude oil prices put additional pressure on the yen and support domestic inflationary pressures.   

The yen hovered at 159.31 against the U.S. dollar, driven by persistent downward pressure on the embattled currency. 

The yield on 10-year Japanese government bonds traded at 2.89%, down from a three-decade high of 2.95% reached earlier in the week. 

The Bank of Japan is likely to raise rates by 25 basis points at the end of its policy meeting on September 18.  

Japan's core machinery orders jumped in June, reflecting broad-based recovery in business investment, noted a monthly report from the Cabinet Office. 

Core machinery orders, which excludes volatile sectors such as ships and electric utilities, jumped 9.7% from the previous month to 1.06 trillion yen and shifted from a 12.4% decline in June. 

Orders from manufacturers accelerated to 19.9% from a decline of 14.9%, while non-manufacturing orders growth slowed to 4.5% from 9.3% in the previous month, respectively. 

On an annual basis, core machinery orders expanded 16.9% and reached a four-month high, swinging from May's 1.9% decrease. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 3% to 65,392.12, and the TOPIX dropped 3.1% to 4,011.66. 

Japanese companies deeply integrated into the global AI supply chain traded down, tracking a worldwide sell-off. 

Kioxia Holding Corp. dropped 11.5% to ¥50,710.0, Tokyo Electron decreased 3% to ¥54,670.0, Advantest Corp. fell 0.8% to ¥35,560.0, and Furukawa Electric plunged 12.6% to ¥3,815.0.