Japan's Nikkei Slides About 4% as Chip Rout Hits Tokyo

Japanese stocks tumbled on July 28, with the Nikkei 225 dropping about 4% and briefly falling below 62,000 to its lowest level since late May, while the broader Topix index also declined. The semiconductor sector led the losses almost across the board, mirroring a broader retreat in global chip stocks after the strong Shanghai debut of Chinese memory maker ChangXin Memory Technologies raised fears of intensifying competition. Chip-related heavyweights and AI-linked names bore the brunt of the selling, echoing sharp declines in neighbouring South Korea, where the Kospi crashed nearly 11%. The sell-off unfolded as the Bank of Japan concluded a policy meeting, with markets widely expecting the central bank to keep its benchmark rate at 1% following June's hike to the highest level since 1995. Investors were focused on the vote split and Governor Kazuo Ueda's guidance on the pace of future tightening. Adding to the cautious mood, oil prices remained volatile amid an uneasy pause in the US-Iran conflict, keeping pressure on risk appetite across the region.