Japanese stocks fell sharply on Monday, with the Nikkei 225 down 1.92% to 67,242. Viral publications now say the market has lost ¥82 trillion in three weeks and describe the decline as a disaster.
The title number is very accurate. The index is down 7.7% since June 22 history and 72,831.73. However, Monday’s closing data shows a volatility in the sector rather than a fall in the market.
Korean Chip Crash Drags Japanese Dollars Lower
Seoul was the first to sell. The KOSPI fell more than 8% intraday, forcing the Korea Exchange to open the market stop. Shares of SK Hynix fell up 12% just two days after the company’s $26 billion Nasdaq IPO.
The sale spread directly to Tokyo’s AI names. Kioxia fell 12.9%, Murata fell 8.1%, and Renesas lost 6.2%. Kioxia and Advantest alone dragged the Nikkei down about 272 points, according to Nikkei data. Yaskawa Electric fell 14.3% after reporting a weak first quarter.
Oil added some pressure. Crude oil jumped 4% after Iran moved to close the Strait of Hormuz in exchange for US troops. Daisuke Hashizume, chief analyst at Daiwa Securities, connected warning of rising electricity prices.
“The market was affected by the price hike due to the increase in oil prices, and this came as the acquisition season for Japanese companies began.”
Damage Claims Meet Bail Bonds
The viral index of the daily loss of 2.60% shows the intraday trend. The index traded down about 2.8% during its low period with 66,635 buyers before it entered. A one-day loss of ¥27 trillion equates to a decline, not a shutdown.
Meanwhile, market growth was strong. The broader Topix fell just 0.2% as banks gave a boost. Mitsubishi UFJ gained 2.3%, and money shifted from AI chips to gainers and higher prices. The pattern is consistent with the old signs semiconductors than Big Tech and crypto in the first half.
Technically, the index defended its support level of 66,500 to 68,000 on Monday. A daily close below would reveal the 62,000 to 63,500 area, about 7% lower. The daily RSI is near the neutral 50 level, reset from June’s high reading.
Bitcoin Shrugs From Asia Rout
Crypto didn’t do anything. Bitcoin (BTC) is traded nearby $ 62,986, down 1.5% in 24 hours, while the total crypto market cap slipped 1.2% to $ 2.25 trillion.
The calm contrasts with August 2024, when the Nikkei crash dragged bitcoin down 15% in one day. Traders will now look like Bank of Japan policy remained at 1% on July 30 and 31. Analysts still expect a rise of 1.25% by the end of the year, keeping Depression in the Japanese bond market and bear the risk of trading with the yen near 162 per dollar.
Whether Japanese stocks recover may depend on this week’s peace talks in Doha and the memory-chip gains it triggered. A safety margin of 66,500 would favor a regulatory case for this accident.
A note Japanese Stocks Lose ¥82 Trillion in Three Weeks: AI Chip Rout or Healthy Recovery? appeared for the first time BeInCrypto.
