Tokyo stocks fall in morning on weak chip issues

Tokyo stocks were down Wednesday morning as semiconductor-related issues fell following U.S. chip giant Nvidia Corp.’s announcement of $5.5 billion in charges due to the U.S. government’s export curbs on China.

The 225-issue Nikkei Stock Average fell 251.23 points, or 0.73 percent, from Tuesday to 34,016.31. The broader Topix index was down 14.66 points, or 0.58 percent, at 2,498.69.

The U.S. dollar weakened to the upper 142 yen range in Tokyo as the safe-haven Japanese currency was sought on persistent concern about an intensifying trade war between the United States and China, dealers said.

At noon, the dollar fetched 142.71-72 yen compared with 143.22-32 yen in New York and 143.30-32 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.1328-1329 and 161.66-69 yen against $1.1275-1285 and 161.58-68 yen in New York and $1.1357-1358 and 162.75-79 yen in Tokyo late Tuesday afternoon.

The stock market enjoyed modest gains in early trading as some domestic demand-sensitive shares rose, but it soon lost steam as heavyweight semiconductor issues lost ground on the news of the Nvidia charges stemming from the U.S. government’s restriction of exports of its H20 artificial intelligence chip to China, brokers said.

The market was also pressured by uncertainty over the global economic impact of U.S. tariffs as well as the outcome of forthcoming Japan–U.S. tariff negotiations, brokers said.

==Kyodo

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