tokyo stocks stumble: is this a semiconductor setback?

2025-09-01 general

tokyo, Monday, 1 September 2025.
tokyo’s stock exchange faced a sharp downturn. the nikkei average dropped by 2.03%, settling at 41,849.82 yen. semiconductor stocks led the decline, mirroring a trend from the u.s. market. overseas investors selling stock index futures worsened the situation. the fall of the growth market 250 index, which tracks emerging companies, shows wider market concerns. could alibaba’s ai chip development and us-china tech competition be factors? or is this a prime buying opportunity?

semiconductor stocks take a hit

Semiconductor-related stocks experienced significant selling pressure, mirroring trends observed in the U.S. market [1]. Advantest and SoftBank Group (SBG) notably dragged down the Nikkei average, contributing to a nearly 500 yen decrease [1]. Other semiconductor-related stocks and companies expected to benefit from the expansion of the AI market, such as electric wires, also faced widespread declines [1]. The Philadelphia Semiconductor Index (SOX) had already fallen by over 3% the previous Friday, setting a negative tone for the Tokyo market [1].

factors influencing the decline

The Wall Street Journal reported that Alibaba Group developed new AI-oriented semiconductors [1]. This development intensifies competition between the U.S. and China in AI semiconductor development [1]. Concerns arise that increased competition could reduce demand for U.S. semiconductors, impacting companies like Nvidia [1]. Adding to the selling pressure, overseas short-term investors engaged in selling stock index futures, further pushing the Nikkei average down as trading progressed [1]. The U.S. market’s closure for Labor Day also likely amplified sell-off activity [1].

individual stock performances

Disco’s stock price is currently at 37,850 yen, a decrease of 3,500 yen or 8.46% [3]. Advantest’s stock is at 10,615 yen, down 1,060 yen or 9.08% [5]. The decline prompts investors to consider whether this represents a buying opportunity [3][5]. Some investors are looking to buy at the bottom [3]. Others express caution regarding Advantest’s stock [5]. TOWA’s stock is also being discussed, with some suggesting it may be a buying opportunity [7]. Conversely, some investors believe there are no factors to drive the stock price up [7].

broader market trends and investor sentiment

The TOPIX index also declined, closing the morning session down 23.92 points (0.78%) at 3051.26 [1]. Trading activity on the Tokyo Stock Exchange’s Prime market saw approximately 2.1523 trillion yen in turnover, with 924.22 million shares traded [1]. Declining stocks outnumbered advancing ones, with 832 issues falling compared to 723 rising and 63 remaining unchanged [1]. Despite the overall market downturn, some domestic demand-related stocks in pharmaceuticals, food products, and railways attracted buying interest from domestic investors [1].

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semiconductor stocks market decline