Nikkei Plunges Over 1,600 Points as Chip Stocks Bear the Brunt of Iran Fears
- Nikkei briefly fell more than 1,600 points on June 10, led by semiconductor names
- US-Iran exchanges of strikes fueled fears of a prolonged crisis
- Energy costs and rate-hike expectations squeeze high-valuation tech stocks
Taiwanese investors know this script: when geopolitical risk spikes, the first stocks sold are the chip names that rose the most. Tokyo replayed it on June 10 - the Nikkei briefly plunged over 1,600 points as US-Iran strikes raised fears of a drawn-out crisis, with selling concentrated in the semiconductor complex that led the past year's rally. The chain is textbook: oil and shipping costs up, manufacturing margins squeezed, growth-stock earnings marked down, all while US inflation at 4% revives rate-hike talk that compresses valuations. Two distinctions matter amid the panic: the trigger is geopolitical, not a collapse in order books, and the weak yen at 160 still cushions exporter earnings. For readers holding both Taiwanese and Japanese chip exposure, Tokyo's correction often previews Taipei's. Watch oil, the Fed's language, and whether the Nikkei holds the launch point of this rally - lose that, and this stops being a dip.