Nikkei Extends Decline in Tokyo, Falls Below 66,000 on Semiconductor Selling

2026-08-19

Selling Spreads to Tokyo Market

The Nikkei Stock Average extended its decline in Tokyo trading on the 19th, falling more than 2,000 points from the previous day at one point. Selling of semiconductor-related stocks expanded in the previous day’s U.S. stock market, spreading to the Tokyo market. The upward trend in long-term interest rates also weighed on share prices.

Selling Hits Semiconductor-Related Stocks

The Nikkei at one point fell below 66,000. Selling spread mainly across semiconductor-related stocks, including Advantest, Tokyo Electron and Kioxia Holdings.

In the U.S. stock market on the 18th, the Philadelphia Semiconductor Index (SOX), composed of major semiconductor-related stocks, fell 5%. Rising interest rates worldwide cooled investor sentiment, with the yield on 30-year U.S. Treasury bonds briefly reaching a 19-year high. Selling also emerged in artificial intelligence (AI) and semiconductor-related stocks, whose valuations had been viewed as high.

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