Doha: Japan's Nikkei index fell nearly 4 percent on Tuesday, posting its lowest closing level in more than two months, weighed down by declines in chip-related stocks ahead of major technology companies' earnings.
According to Qatar News Agency, the Nikkei dropped 3.95 percent to 62,364.92, marking its lowest closing level since May 21, while the broader Topix index fell 2.52 percent to 3,963.59. The losses were triggered by a 4.9 percent drop in Nvidia shares during overnight trading and a 2.2 percent decline in the Philadelphia Semiconductor Index, contributing to the ongoing sell-off in the semiconductor sector.
The ripple effects were felt across Asia, with South Korea's Kospi index falling more than 10 percent and memory chipmaker Kioxia experiencing an 18.33 percent drop. Semiconductor manufacturing and testing equipment companies Advantest and Tokyo Electron each saw their shares fall by more than 10 percent.
The Nikkei has seen a decline of over 14 percent since its peak in mid-June. Banking shares also suffered, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group each losing more than 3 percent.
Out of the more than 1,500 stocks traded on the Tokyo Stock Exchange's Prime Market, approximately 30 percent advanced, while 67 percent declined and about 1 percent remained unchanged.