Nikkei Drops to Five-Month Low as Chip Stocks Tumble Following Nvidia's Disappointing Forecast; Advantest Plunges 8.8%

Tokyo's Nikkei share average plummeted to a five-month low on Friday, February 28, as chip-related stocks mirrored Nvidia's overnight decline. The Nikkei fell 2.7% to 37,237.49, while the broader Topix lost 1.9% to 2,683.9. Nvidia's 8.5% slump, triggered by a weaker-than-expected gross margin forecast, heavily impacted Japanese chip stocks. Advantest, a supplier to Nvidia, tanked 8.8%, significantly dragging down the Nikkei. Tokyo Electron also slipped 3.8%. Fujikura, a data center cable manufacturer, fell 8.8%, and Furukawa Electric lost 5.5%. Concerns over U.S. tariff threats and the Bank of Japan's interest rate policy also contributed to the market's decline. Of the stocks traded on the Tokyo Stock Exchange, 14% rose, 82% fell, and 2% traded flat.