Tokyo equities are likely to start August 19 under heavy pressure after U.S. stocks fell, the yen strengthened further and Chicago Nikkei 225 futures slid to 66,285, down 1,255 points from the Osaka Exchange settlement price. That points to a weaker open for the cash market and raises the prospect that the Nikkei 225 could test a key psychological support level. The overnight selloff in U.S. markets was led by semiconductor shares, with the Philadelphia Semiconductor Index, or SOX, dropping 628.54 points, or 5.0%, to 11,992.46 after having recovered to 12,621.00 the previous day, a reversal that is likely to weigh on chip-related names in Tokyo. Investors are also grappling with uncertainty over the Trump administration's tariff policy, worries that higher import prices could revive inflation and reduce the Federal Reserve's scope for rate cuts, and concerns that a slowdown in China could hurt export-oriented companies' earnings. Rising U.S. long-term yields add another obstacle, especially for high-P/E growth and technology shares. Domestic support factors such as active share buybacks and the Tokyo Stock Exchange's efforts to improve corporate value are still seen as longer-term positives, but near-term trading is expected to be driven by deteriorating external conditions. Market attention on August 19 will center on Japan's June core machinery orders, the Bank of Japan's government bond purchase operation, July foreign visitor arrivals, UK and eurozone July CPI data, and minutes from the Federal Open Market Committee (FOMC) meeting held July 28-29.