Tokyo stocks extend losses, Nikkei in lower 666,000 yen range

2026-07-14

Tokyo stocks open lower again

At the Tokyo Stock Exchange opening on the morning of the 14th, the Nikkei Average started lower for a second straight session and traded in the lower 666,000 yen range, about 600 yen below the previous day. Following weakness in Asian semiconductor shares, profit-taking selling spread on the U.S. stock market on the 13th in semiconductor-related stocks including Micron Technology, Advanced Micro Devices (AMD) and Nvidia. The Philadelphia Semiconductor Index (SOX), made up of major chip stocks, fell more than 4%, and selling also led the market in Tokyo shares including SoftBank Group (SBG) and Kioxia.

Higher oil prices weigh

A sharp rise in crude futures is also dampening investor sentiment. After Iran declared it would once again block the Strait of Hormuz, U.S. President Donald Trump said he would resume a maritime blockade on Iran and charge vessels passing through the Strait of Hormuz an amount equivalent to 20% of their cargo value as payment for security. Concerns over safe passage through the strait and over crude supply intensified, and New York crude futures accelerated to the 79-dollar-per-barrel range in after-hours trading on the 14th Japan time. Selling is also emerging in banks and construction shares, which are sensitive to the economy.

Short-covering in futures

The Nikkei Average at one point widened its losses to nearly 1,000 yen, but later narrowed them sharply. Following the previous day's steep decline, buying believed to have come from overseas short-term traders seeking a near-term rebound entered stock index futures, easing selling pressure in the cash market as well. The Tokyo Stock Price Index (TOPIX) is moving around the previous day's closing level.

Among individual stocks, Fujikura, Fast Retailing and Ibiden fell. On the other hand, Recruit, KDDI, Ryohin Keikaku and Honda rose.

Enjoyed this article? Share it with your network!