Asian Chip Stocks Slammed as Nikkei Slides and Yen Weakens

Japanese stocks tumbled on July 16 as a chip-led selloff swept across Asian markets, with the Nikkei 225 falling around 3% and memory and equipment makers among the hardest hit. Heavyweights including SoftBank Group, Kioxia and Advantest led Tokyo's declines, mirroring steep losses in South Korea, where the Kospi dropped sharply enough to trigger volatility controls. The rout followed a volatile stretch in which the same chip names had swung between heavy losses and powerful rebounds, driven by shifting expectations for global artificial intelligence demand and US interest rates. Adding to the pressure, the yen remained weak, hovering near 162 to the dollar, close to multi-decade lows, keeping currency intervention risks in focus. The selloff underscored how exposed Japanese and Korean markets have become to the fortunes of a handful of semiconductor giants at the centre of the AI investment boom, as well as to swings in global risk sentiment tied to Middle East tensions and the outlook for monetary policy. Investors braced for further turbulence pending upcoming earnings from major chip-equipment suppliers.