Nikkei closes at its lowest level in more than a week as Socionext shares plunged

Japan’s Nikkei average closed Thursday at its lowest level in more than a week, dragged down by shares of chip-related companies, with Socionext falling to a daily low after its largest shareholders sold their entire stake in the fast-growing chip design company.

The Nikkei fell 1.7 percent to close at 32,773.02 points, the lowest level since June 27, after it recorded its biggest daily decline since June 7.

The broader Topix index fell 1.26 percent to 2,277.08 points.

Socionext plunged 22.78 percent, and trading in the stock was halted for most of the session, after its major shareholders, including Panasonic Holdings and Japan Development Bank, announced that they would sell their entire stake worth 280 billion yen ($1.94 billion).

Socionext, which went public in October last year, has advanced nearly 200 percent this year, becoming one of the iconic chip-related stocks that helped the Nikkei reach a 33-year high.