Japan Market Daily | Kabutaro & Friends

On August 19, 2026, Tokyo's Nikkei 225 fell sharply for a second straight session, closing down 2,134.31 points (-3.16%) at 65,326.42, dropping below 66,000 on a closing basis for the first time in about two weeks since the 7th. The TOPIX also fell more than 3%, down 127.91 points to 4,012.31. Profit-taking accelerated in AI and semiconductor stocks following the US market on the 18th, where the Dow fell 116 dollars for a third straight session and the Philadelphia Semiconductor Index (SOX) plunged nearly 5%. President Trump posted on social media on the 18th that there were no ongoing or planned talks or dialogue with Iran, renewing Middle East risk concerns. The US 30-year Treasury yield hit a 19-year high and Japan's long-term rate rose to 2.945%, a roughly 30-year high, making high-PER tech stocks look relatively expensive. South Korea's KOSPI plunged nearly 7% at one point, triggering a sidecar, further chilling sentiment. SoftBank Group and Advantest alone dragged the index down by about 687 points, while Kioxia Holdings fell more than 12%. USD/JPY traded softly in a range of 159.11 to 159.64.