tokyo stocks stumble as us tech rout hits semiconductors
Tokyo, Friday, 16 May 2025.
tokyo stocks experienced a downturn. This was triggered by a sell-off in u.s. tech stocks, particularly impacting semiconductor shares. The nikkei’s early trading saw it dip to the 37,600 level. The fall mirrored declines in the philadelphia semiconductor index. Domestic gdp saw its first negative growth in four quarters, dropping 0.2%. This confluence of factors created a challenging environment for investors. Some stocks like tokyo electron, advantest and softbank group fell.
tsmc implications
The decline in u.s. tech stocks has direct implications for tsmc, given its significant role in the semiconductor industry [1]. As a major supplier to many u.s. tech companies, any downturn in the philadelphia semiconductor index can translate to reduced demand for tsmc’s manufacturing capacity [1]. This could affect tsmc’s revenue and stock performance, especially if the sell-off persists or deepens. Monitoring the sox and overall tech sentiment in the u.s. market is crucial for assessing potential impacts on tsmc [1].
market reaction and expert views
The reactions in online forums reflect investor unease. One user noted semiconductors in general are doing poorly [7]. Another user pointed out that stocks do not always rise [7]. Such sentiment highlights the caution surrounding semiconductor stocks amid the broader market volatility. Technical analysis and chart patterns are being closely watched by investors trying to predict short-term movements, with some suggesting potential support levels and trading strategies [7].
yen’s strength adds pressure
The yen’s exchange rate strengthened to approximately 145 yen against the dollar [1]. A stronger yen can negatively affect the earnings of japanese companies that rely heavily on exports, as it makes their products more expensive in international markets [alert! ‘TSMC is not a Japanese company, so the yen’s strength should not affect it directly’]. The initial opening of the nikkei was down 6.93 yen from the previous day, opening at 37,748.58 [2].