Nikkei Plunges 3.9% as Semiconductor Competition Fears Intensify

The Nikkei Stock Average plummeted by 2,566.27 yen, or 3.9%, to close at 62,364.92 on July 28, marking a sharp reversal after recent gains.

The decline was triggered by growing concerns over intensifying competition in the global semiconductor industry and a sharp fall in South Korean stocks.

Artificial intelligence and chip-related shares were hit particularly hard, with Nvidia dropping 5% and ASML declining due to reports that a Chinese state-affiliated company was developing deep ultraviolet lithography equipment used in semiconductor manufacturing.

Kioxia Holdings, a Japanese memory manufacturer, was the most actively traded stock by value on the Prime Market and remained at its daily limit low, closing at 44,550 yen, their lowest level since May 15.