Japan's Nikkei plunged more than 2,500 points at one stage on Tuesday as chip and AI shares were sold off

Tokyo's Nikkei 225 index fell by more than 2,500 points at one stage on Tuesday, 28 July 2026 (6 Mordad 1405). According to News On Japan, sell orders piled up in artificial intelligence and semiconductor related shares from the very start of the session, following the sharp fall in US chipmakers' shares in New York on Monday, 27 July, where investors turned more sceptical about the industry's future demand.

Market data for the same day recorded the Nikkei down about 4.3 percent at around 62,115 points and the broader Topix down 2.3 percent at 3,973, the Nikkei's lowest level in two months. Among the biggest decliners were Tokyo Electron, down 9.7 percent, Advantest down 8.4 percent, Taiyo Yuden down 7.3 percent and SoftBank Group down 4 percent. Banking shares also retreated: Mitsubishi UFJ fell 3.2 percent, Sumitomo Mitsui 3 percent and Mizuho 3.9 percent.

The Nikkei had closed Monday, 27 July, up 320 points, or 0.50 percent, at 64,931, so Tuesday's drop is a complete reversal from the prior session. Japan sources more than 90 percent of its imported crude from West Asia, and its equity market is one of the reference points for gauging Asian investors' risk appetite, a variable that bears on capital flows across the region.