Tokyo Stocks Close Monday in Red

(MENAFN) Japanese equities suffered a sharp decline Monday as semiconductor stocks triggered widespread selling pressure across Tokyo's major exchanges.

The Nikkei 225 plunged 529.68 points to settle at 42,188.79—a 1.24 percent drop representing the index's weakest close since August 8. At session lows, the benchmark tumbled nearly 900 points before recovering slightly.

Semiconductor heavyweights bore the brunt of selling, with Advantest, Tokyo Electron, and Disco leading declines. SoftBank Group also retreated, alongside cable manufacturer Fujikura, which investors view as an artificial intelligence play.

International short-term traders amplified losses through aggressive index futures selling. The absence of U.S. trading due to Labor Day holiday contributed to bearish sentiment as investors unwound positions.

The broader Topix declined 11.99 points to 3,063.19, representing a 0.39 percent decrease.

Trading data from the Tokyo Stock Exchange's Prime Market revealed 806 stocks falling compared to 750 advancing issues, with 62 shares closing unchanged.

The selloff underscores growing concerns over chip sector valuations amid global economic uncertainty, with overseas capital flight intensifying downward pressure on Japan's technology-heavy market indices.

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