Japan Market Daily | Kabutaro & Friends

On July 29, 2026, Tokyo's Nikkei 225 fell for a second straight session, closing down 930.73 points (-1.49%) at 61,434.19. Bargain-hunting buying led the market higher at the open, rising as much as to 63,138.04, but a decline in the Nasdaq in the US overnight and an after-hours plunge in a major US chip equipment maker's shares weighed on sentiment. In the afternoon, a further drop in South Korea's KOSPI accelerated selling in AI and semiconductor stocks, sending the Nikkei down as far as 60,448.90 at one point. SK Hynix's April-June earnings, though showing higher sales and profit, missed market expectations, and its shares plunged in Seoul, adding to the pressure. Kioxia Holdings fell 13%. Meanwhile, value stocks such as Toyota Motor, which rose 7%, saw an accelerating shift of funds. The TOPIX rebounded. USD/JPY traded in the 163 range, with little clear direction as markets awaited the FOMC decision due later that evening Japan time. Oil (WTI) fell for a third straight session to $79.08.