Tokyo, July 9, 2026, 04:01 JST
- Tokyo’s cash equity market didn’t open before trading started Thursday. JPX’s 2026 calendar does not list a July 9 holiday, and the Tokyo Stock Exchange is usually open from 09:00 to 11:30 and 12:30 to 15:25 JST.
- Nikkei 225 dropped 2.11% to finish at 66,819.05 on Wednesday, marking a third loss in a row. The dollar/yen hovered around 162.45.
- Fed minutes put rate risk in the spotlight as some officials wanted a rate hike right away and worries around inflation ran deeper.
Nikkei 225 fell under 67,000 Wednesday. AI-linked chip shares lost ground as investors trimmed positions. The yen slipped again, hovering near levels that have sparked currency intervention risk.
Tokyo’s slide is grabbing attention now because the market’s rally has been powered by AI stocks. Those names, tied to data center chip optimism, carry high valuations. The Nikkei sits well above its 52-week low but ended Wednesday much softer, dropping below its recent 72,831.73 peak. The move showed how fast cash can exit the market’s hottest trades.
Rates were in focus, too. Minutes from the Federal Open Market Committee showed the central bank’s inflation concerns were picking up, and some members thought a rate hike right away made sense. The Fed still kept its target at 3.50% to 3.75%.
The Nikkei dropped 1,437.91 points to close at 66,819.05. Topix slid 1.37% and finished at 4,006.43. Losses hit more than just a handful of stocks, but most of the pain was in growth and tech names.
Chip stocks dropped in both Asia and the U.S. Samsung Electronics and SK Hynix shares fell in Seoul. In New York, Micron, AMD and Intel all slipped as traders wondered if the AI-fueled run-up had gone too far. Semiconductors are the chips inside servers and devices. Now the market is worried that even strong results may not keep up with high expectations.
Kazuaki Shimada, chief strategist at IwaiCosmo Securities, said “The market looked into the shares of Samsung Electronics,” after the company’s forecast topped forecasts but its stock dropped. Shimada called it a “healthy correction” and said investors rotated out of chip stocks into lower-priced value shares. Business Recorder
Rotation played out in Tokyo this week. On Tuesday, Kioxia and Taiyo Yuden dropped about 11%. Murata Manufacturing slid 10%. Domestic-demand names and financials fared better, with banks rising. Naoki Fujiwara, senior fund manager at Shinkin Asset Management, said money wasn’t just moving out of stocks—rotation was still underway.
Currency markets stayed busy. Dollar/yen settled near 162.52 late Wednesday for a fourth day of gains. Traders kept an eye out for any move from Japanese authorities to support the yen, which hovered at lows last touched in 1986. Some are prepared for an official yen buy to stem the slide.
Zai FX, part of Diamond’s financial-markets group, said traders were watching moves in the dollar, yen and euro along with large stock markets, U.S. Treasury yields and the latest Fed minutes. The publication also pointed to talk about possible intervention from Japan and U.S. inflation concerns as main factors for the day’s trading.
Mitsushige Akino, who heads Ichiyoshi Asset Management, said ETF redemption selling was already priced in, so some investors were waiting. Exchange-traded funds, or ETFs, are baskets of securities that trade like stocks. Selling tied to ETF redemptions can pressure markets when funds cut positions.
Oil and Treasury bonds moved together. U.S. crude climbed 6.86% to $75.27, Brent gained 7.2% to $79.50 as new Middle East tensions hit, and U.S. Treasury yields also rose. Traders increased bets on Fed hikes in July and September. When yields rise, the dollar often gets support and high-valuation growth stocks can take a hit.
Zachary Hill, who leads portfolio management at Horizon Investments, said the U.S. action was part of a rotation following a “blistering run” in AI, semiconductor and memory names. He said expectations were now “almost impossible to beat.” Reuters
The downside case is still in view: If U.S. yields and oil keep climbing, the yen might slide further. That could push up odds of intervention and signal tighter global financial conditions. A sharp yen bounce would cut exporters’ currency boost, and more pressure on chip stocks could drag the Nikkei down before value names can step in to stop the selling.
Tokyo traders on Thursday will watch to see if buyers step in or hold off. Markets are open and there’s no holiday to slow things down. The big test is if Japan’s rally can move past AI stocks, or if the chip selloff isn’t over yet.
