Nikkei 225 falls sharply amid semiconductor sector sell-off

The Tokyo stock market experienced significant volatility in mid-October 2026, driven largely by the semiconductor sector. On October 14, the Nikkei 225 saw a brief morning rally led by heavyweights like Fast Retailing and SoftBank Group. However, sentiment shifted sharply following the quarterly earnings report from Dutch semiconductor equipment maker ASML. Although ASML reported increased revenue and profit, its sales figures met market expectations rather than exceeding them, and its full-year guidance remained unchanged. This led to a sell-off in semiconductor-related stocks, including Tokyo Electron and Lasertec.

This downward trend intensified on October 15. During the morning session, the Nikkei 225 fell by 3,255.23 yen to close at 64,489.06 yen. The decline was attributed to a 4% drop in the SOX index in New York and rising concerns regarding U.S. interest rate hikes following higher-than-expected consumer price index (CPI) data. Additionally, concerns over corporate debt prices contributed to the negative market sentiment.