Nikkei closes lower amid sharp decline in chip stocks and global trade tensions

Tokyo: Japan s Nikkei index closed lower Friday, weighed down by a steep drop in semiconductor related stocks and growing concerns over reduced invest...

Tokyo: Japan’s Nikkei index closed lower Friday, weighed down by a steep drop in semiconductor-related stocks and growing concerns over reduced investment by major technology firms.

The decline followed an announcement by US President Donald Trump imposing new tariffs on dozens of trade partners, which dampened investor sentiment and triggered a retreat from high-risk assets.

Tokyo Electron, a major player in the tech sector, saw its stock plunge by 18%, marking its lowest level in nearly a year.

The company slashed its profit forecast due to reduced capital spending by semiconductor firms, particularly in China. Advantest, a manufacturer of chip-testing equipment, also fell by 1.3%, reflecting broader weakness in the sector.