Nikkei 225 slips 0.18% as chip rally fades before US tech earnings

Japan’s benchmark gave back early gains amid softer semiconductor momentum, higher oil prices and June trade-deficit data, while South Korea’s KOSPI still rose 0.74% after a sharp intraday surge.

Summary

Asian equity markets ended mixed on July 22. Japan’s Nikkei 225 closed down 116.59 points, or 0.18%, at 66,115.60, reversing earlier gains as momentum in semiconductor shares faded and investors turned cautious ahead of earnings from Alphabet and Tesla. Broader sentiment was also influenced by higher oil prices, geopolitical tension linked to continued US strikes on Iranian targets, and data showing Japan’s trade balance returned to a deficit in June as imports grew faster than exports. South Korea’s KOSPI rose 49.75 points, or 0.74%, to 6,797.7 after climbing more than 6% intraday; among major chipmakers, SK Hynix fell 0.32% while Samsung Electronics gained 0.57%.

Terms & Concepts
  • Nikkei 225 Index: Benchmark stock index for major Japanese companies
  • trade balance: Difference between a country's exports and imports
  • KOSPI: South Korea’s benchmark stock index