nikkei dips as nvidia woes spread to tokyo semiconductors

2025-09-01 general

tokyo, Monday, 1 September 2025.
the tokyo stock exchange faced a downturn on september 1, 2025. this decline mirrored the struggles of tech stocks in the us, especially nvidia. the nikkei average fell because of heavy selling of semiconductor stocks like advantest and tokyo electron. a report suggested potential issues for ai development. investor anxiety grew in asia. adding to the pressure, the yen weakened against the dollar due to federal reserve policy worries. this confluence of factors created a challenging start to the trading week.

initial market response

The Nikkei average started the day with a drop, trading in the ¥42,400 range, approximately ¥300 lower than the previous Friday [1]. The decline briefly exceeded ¥400 [1]. The fall in US semiconductor stocks, led by Nvidia, influenced selling in Tokyo’s Advantest and Tokyo Electron [1]. The Nikkei 225 futures also began lower on the Osaka exchange, opening at ¥42,250, a ¥440 decrease from the prior Friday’s settlement [3]. These initial movements reflect investor apprehension regarding the tech sector’s near-term prospects.

ai chip competition

A Wall Street Journal report on August 29 indicated that Alibaba Group developed a new AI semiconductor [1]. This development intensifies competition in AI chip development between the US and China, especially given US export restrictions [1]. The philadelphia semiconductor index (SOX) fell by over 3% on august 29, impacting the tokyo market [1]. While semiconductor stocks faced selling pressure, some pharmaceutical and food stocks saw buying interest, which provided some support to the market [1]. The tokyo stock price index (topix) initially declined but then shifted upward [1].

market data and analysis

At 09:17 on september 1, the nikkei average stood at ¥42,408.69, representing a decrease of ¥309.78 or 0.73% [4]. The day’s trading started at ¥42,362.71, a ¥355.76 decline from the previous week [2]. The nikkei’s projected trajectory suggests a potential drop to around ¥42,000, approximately ¥700 lower than the previous close of ¥42,718 [7]. However, technical analyst itoh tomohiro suggests that if the price breaks below ¥42,137, it could trigger a further decline toward ¥39,850, the low from august 4 [8].

stocks in focus

SoftBank Group, Recruit, and Konami saw declines [1]. Conversely, Chugai Pharmaceutical, M3, Honda, and OLC experienced gains [1]. Investors are closely monitoring these individual stock movements, assessing the overall health and direction of the market [GPT]. Market sentiment, as reflected in investor evaluations, indicates that 65.22% strongly want to buy, while 7.25% strongly want to sell [4]. This mixed sentiment highlights the uncertainty and potential volatility in the current market environment [4].

Bronnen

semiconductors stock market