Japan’s Nikkei Falls over 2％ as Chip Shares Slump, Yen Firms

TOKYO (Reuters) – Japan’s Nikkei share average lost more than 2% on Monday, as chip-related stocks tracked their U.S. peers lower, while the yen’s strength also weighed on sentiment.

The Nikkei had lost 2.48% to 38,704.10 by the midday break, its biggest daily decline since December 2022 if current trend holds.

The broader Topix lost 2.25% to 2,665.37.

“U.S. chip stocks fell at the end of last week, which helped the Nikkei to enter a correction phase,” said Shuji Hosoi, senior strategist, Daiwa Securities.

The S&P 500 and Nasdaq closed lower on Friday, after touching record highs during the session, with high-flying chip stocks reversing course.

The Philadelphia Semiconductor index lost 4% on Friday, with Nvidia becoming the biggest drag.

“Japanese equities were also hurt by the stronger yen. This trend will probably continue until…