Nikkei plunges over 3% as global chip rout spreads to Tokyo

Advantest and Tokyo Electron lead losses in Japan as Wall Street weakness and Nvidia's decline trigger a broad semiconductor selloff ahead of key U.S. earnings.

By Handelsavisen Newsroom · Automated 2026-07-28 02:22 UTC · 1 min read

Japan's Nikkei 225 index fell more than 3% on Tuesday, dragged down by a sharp sell-off in semiconductor-related equities.

The decline extended a global rout in chipmakers that began on Wall Street, with heavy selling pressure hitting key Japanese names including Advantest and Tokyo Electron.

Earlier in the week, the Nikkei had already tumbled more than 3% on Thursday, dropping to 66,612.

The market move follows a steep drop in Nvidia shares, which has intensified concerns over the sustainability of AI-driven capital expenditure cycles.

As the world's largest chipmaker by market capitalization, Nvidia's performance often sets the tone for the broader sector, and its recent weakness has triggered a repricing of risk across global semiconductor stocks.

This development adds to a week of volatility in the sector.

Earlier in the week, the Nikkei had already tumbled more than 3% on Thursday, dropping to 66,612.63 in late-morning trading, driven by similar pressures in tech-heavy weights. The current session's decline marks a further deterioration in Asian market sentiment, with investors reacting to the deepening global chip selloff.