Nikkei Extends Fall on AI, Semiconductor Profit-Taking Near 68,000

2026-07-03

Semiconductor Stocks Under Selling Pressure

At the open of the Tokyo stock market on the morning of the 3rd, the Nikkei Stock Average started lower for a second straight session and traded around 68,000, about 700 yen below the previous day. At one point, the decline nearly reached 1,000 yen. In the U.S. stock market the previous day, semiconductor-related shares including Micron Technology were sold, and the Philadelphia Semiconductor Index (SOX), composed of major semiconductor stocks, fell sharply for a second straight session, down 5.4%.

In Tokyo as well, position adjustments and profit-taking continued in artificial intelligence and semiconductor-related shares that had led the market in the first half of the year, including Advantest, Tokyo Electron and SoftBank Group (SBG), weighing on the market. Kioxia fell sharply.

Nikkei Briefly Finds Support After U.S. Jobs Data

In the June U.S. employment report released on the 2nd, nonfarm payrolls rose less than the market had expected. While the U.S. economy remained firm, investors took the report to mean the Federal Reserve (FRB) was not under pressure to rush into rate hikes, prompting buying in consumer-related shares and lifting the Dow Jones Industrial Average to a record high.

In Tokyo, buying also entered some trading houses, real estate and retail shares, and the Nikkei briefly turned higher soon after the open, rising more than 100 yen at one point. The Tokyo Stock Price Index (TOPIX) moved little around the previous day's close. Ibiden, Taiyo Yuden and Fujikura fell, while Fast Retailing, Chugai Pharmaceutical, Recruit Holdings and Konami Group rose.

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