Nikkei falls in Tokyo, briefly slips below 67,000 on chip shares

2026-07-16

The Nikkei average fell at the open of the Tokyo stock market on the morning of the 16th, at one point dropping by more than 1,700 yen from the previous day. It slipped below 67,000. Following declines in semiconductor-related stocks on Wall Street the previous day, selling also hit artificial intelligence and semiconductor shares in Tokyo. A sharp drop in the South Korea Composite Stock Price Index (KOSPI) on the 16th also intensified selling pressure on semiconductor-related stocks.

Wall Street chip losses spill over

In the previous day's U.S. stock market, the Philadelphia Semiconductor Index (SOX), made up of major semiconductor-related stocks, fell 2.07%. Micron Technology, a semiconductor memory maker, was heavily sold. Ahead of a planned initial public offering (IPO) on the Shanghai Stock Exchange by a major Chinese semiconductor memory company, concerns spread that competition would intensify further as production capacity expanded using funds raised. In Tokyo, selling was dominant, centered on semiconductor-related names such as Tokyo Electron and Advantest.

Domestic demand stocks offer support

On the other hand, buying came into domestic-demand stocks such as retail and services, helping to support the market. The Tokyo Stock Price Index (TOPIX) also fell. Among individual stocks, SoftBank Group (SBG), Kioxia and Ibiden declined. By contrast, Ryohin Keikaku and BayCurrent rose.

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