Japan's Nikkei 225 slumped sharply on August 18, falling about 1,528 yen from the previous close by 2:50 p.m. in Tokyo as semiconductor-related stocks drove a broad risk-off selloff. The move marked a steep reversal from the index's 413-yen rise a day earlier, with investors unwinding positions ahead of a heavy slate of U.S. indicators due later in Japan time, including July import and export prices, housing starts, industrial production, capacity utilization and pending home sales. Advantest, Tokyo Electron and Fast Retailing were the biggest negative contributors to the index, while SoftBank Group, Mitsubishi Corporation and Takeda Pharmaceutical provided some support. Sector performance showed a clear shift away from economically sensitive areas such as electrical equipment, metal products, glass and ceramics, nonferrous metals and machinery, and toward shipping, mining, oil and coal products, steel and pharmaceuticals. Market participants are also watching Home Depot's May-July earnings as a read-through on U.S. consumer spending and housing demand. Analysts say the selling reflects weaker conviction as investors weigh the risk of a U.S. slowdown against renewed inflation pressures, leaving AI-linked semiconductor names especially vulnerable to swings tied to long-term U.S. interest rates and macro data.