Tokyo Stocks Close Lower After Chip Control Notice

Tokyo, (UrduPoint / Pakistan Point News - 23rd May, 2023 ) :Tokyo stocks closed lower Tuesday after Japan announced the start date for its new export controls on chip-linked items, bucking optimism in global markets that Washington will avert a calamitous default.

The benchmark Nikkei 225 index slipped 0.42 percent, or 129.05 points, to 30,957.77, while the broader Topix index fell 0.66 percent, or 14.41 points, to 2,161.49.

During Tokyo trade hours, Japan's trade ministry said that its new export controls on 23 items used to make semiconductors will take effect from July 23, after it made technical changes to its initial plans announced late March.

The Tokyo market opened higher as US President Joe Biden and House Speaker Kevin McCarthy both said they held productive talks on the debt ceiling, shortly before the opening bell.

"The (US) debt ceiling seems to be the only market driver," Stephen Innes, managing partner of SPI Asset Management, said in a note, before the trade ministry's chip control announcement.

But Japanese indexes slipped into negative territory after the announcement, a day after the United States criticised China for restricting sales of chips from American giant Micron, the latest move in a feud between the two powers on semiconductors.

State Department spokesman Matthew Miller said Washington has "very serious concerns" after Beijing's cybersecurity watchdog said Micron failed a national security review, telling operators of "critical information infrastructure" to stop buying its products.

The Dollar fetched 138.48 yen, against 138.57 Yen in New York on Monday.

In Tokyo, chip-related shares led the losses, with chip-making equipment manufacturer Tokyo Electron falling 2.57 percent to 18,180 yen, and chip-testing equipment maker Advantest slipping 1.67 percent to 14,090 yen.

Electronic parts maker Murata Manufacturing lost 1.01 percent to 8,050 yen, Sony Group dropped 2.17 percent to 13,315 yen, and Panasonic declined 1.36 percent to 1,454.5 yen.

Toyota dived 4.77 percent to 1,857 yen, airline ANA Holdings lost 1.61 percent to 3,109 yen, and Nippon Steel fell 1.61 percent to 2,819 yen.

But Uniqlo operator Fast Retailing added 0.68 percent to 34,300 yen and shipping firm Mitsui O.S.K. Lines gained 0.95 percent to 3,200 yen.