Japan’s Nikkei hits one-month closing low as chipmakers falter

Japan’s Nikkei hit its lowest closing level in a month on Thursday, weighed down by losses in chip-related stocks after Nvidia was hit overnight by a US order to halt sales of the top artificial intelligence chip maker to China.

The Nikkei fell 1.53 percent to close at 27,661.47 points, its lowest level since August 2, and the broader Topix index fell 1.41 percent to 1935.49 points.

US stocks ended August with the fourth consecutive daily decline on Wednesday night, recording the weakest August performance in seven years, as concerns persisted about the Federal Reserve’s approval of large interest rate increases.

Federal Reserve Chairman Jerome Powell indicated on Friday that the US central bank will continue to raise interest rates to fight inflation, even if it causes suffering to households and businesses.

In Japan, chip makers Tokyo Electron and Advantest fell 3.35 percent and 4 percent, respectively.

Other heavyweights also fell, with Fast Retailing, owner of clothing stores Uniqlo, losing 1.45 percent, and SoftBank Group, which invests in technology, losing 0.93 percent.

Bucking the trend was home builder Sekisui House, which jumped 5.96 percent, becoming the top gainer on the Nikkei index.

Nippon Steel shares rose 1.27 percent after a report issued by the steel maker and Toyota Motor that they agreed to raise the prices of steel materials used in the auto industry by up to 30 percent. Toyota shares fell 2.33 percent.