“Washington has moved to further restrict China’s access to U.S. technologies, adding to signs of a slowdown in global chip demand,” Saxo Bank market strategist Redmond Wong wrote in a note. The move appeared to weigh on Japanese companies involved in semiconductor production. Chip maker Tokyo Electron fell 5.51% and industrial robot maker Fanuc Corp dropped 3.52%.
Japanese stocks fell Tuesday, led by losses in technology stocks that took their cues from global markets, although travel-related companies remained firm as Japan reopens its borders to regular tourism this week. The Nikkei share average fell 2.34% after returning to trading after a three-day weekend. It opened well below the 27,000 mark and was at 26,480.97 points at the lunch break. The broader Topix fell 1.6%. The Philadelphia Semiconductor Index lost 3.5% overnight after U.S. President Joe Biden last week announced a raft of new export controls that could cripple China’s chip industry.
Electric motor maker Nidec Corp fell 8.7% after reports that the company handled share buybacks inappropriately. The company denied the report and said it was considering legal action. “It looks like the company has been discredited by the share buyback allegations,” said a strategist at a domestic securities firm. Electrical equipment maker Yaskawa Electric fell 5.02% after lowering its profit forecast for the current fiscal year.
Travel-related stocks performed well as investors expect a boost from the resumption of regular inbound tourism this week. Department store operator Takashimaya rose 2.12%, while East Japan Railway gained 1.54%. Topix aviation stocks rose 1.36%. Of the 225 stocks in the Nikkei, 183 recorded losses, 37 gained and five were unchanged.