JKB Financial Services Ltd.

As on : 28-Jul-2026

Market Commentary - Foreign Markets
28-Jul-2026 16:45

Japanese stocks tumble as chip selloff deepens

Japanese stocks ended sharply lower on Tuesday, with the Nikkei 225 falling 3.95% to 62,365, its lowest level in more than two months, while the broader Topix Index lost 2.52% to 3,964.

The decline was led by semiconductor and technology stocks after a sharp overnight selloff in US chipmakers. Investors were worried that strong spending on artificial intelligence could slow if major cloud companies reduce their capital investments, raising concerns about future growth in the sector.

Among the biggest losers were Kioxia Holdings, SoftBank Group, Advantest, Taiyo Yuden, and Tokyo Electron, all of which posted steep declines. Banking stocks also came under pressure, with Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial ending lower.

Meanwhile, oil prices continued to fall after US President Donald Trump said the United States had resumed talks with Iran aimed at easing tensions and ending the conflict in the Middle East.

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