The Nikkei fell sharply for a second straight session, briefly dropping into the ¥65,300 range. Weakness in US semiconductor stocks and rising interest rates weighed on the market.
The Nikkei fell sharply in Tokyo trading on the 19th, dropping below ¥66,812.27 from the open and falling to the ¥65,300 range during the day. The TOPIX also extended its decline.
The move came against a backdrop of widespread declines in semiconductor stocks in the US market. The SOX index fell nearly 5%, with some attributing the risk-off mood to growing uncertainty over the US-Middle East situation.
Global rate increases also weighed on share prices, with the US 30-year Treasury yield around 5.33% and long-term Japanese yields also reaching elevated levels. Selling was concentrated in high-P/E technology stocks.
Among individual stocks, semiconductor-related names broadly declined, with Advantest, SBG and Kioxia coming under selling pressure, while Recruit and Otsuka Holdings were firm.