[Market Recap] Nikkei Falls 488 Points to 65,528, Chip Stocks Slide as TOPIX Diverges Higher – Tonight’s Focus: Jackson Hole Ahead of US Futures Rally [2026/8/24]

Hey everyone, Hirokichi here.

Tokyo stocks fell on August 24, with the Nikkei 225 dropping 488 points to close at 65,528 as chip-related stocks saw profit-taking. Meanwhile, the TOPIX index actually rose, with more gainers than losers, creating a “divergent market.” Looking ahead to tonight’s US session, stock index futures are trading higher, so a positive open looks likely.

Nikkei Falls 488 Points to 65,528, Second Straight Decline

The Nikkei 225 closed at 65,528.09 on August 24, down 488.27 points (-0.74%) from the previous week’s close, marking a second consecutive day of losses (source: Kabutan News). On the Tokyo Stock Exchange Prime Market, 841 stocks advanced while 658 declined.

The top three drags on the Nikkei were:

• Advantest (6857): -337.9 points
• SoftBank Group (9984): -225.27 points
• Kioxia Holdings (285A): -79.55 points

Profit-taking was concentrated in so-called “AI and semiconductor” names, including chip-testing equipment maker Advantest and memory chip maker Kioxia. On the flip side, Tokyo Electron (8035) was the top positive contributor, adding 86.49 points to the index.

TOPIX Rises 7.83 Points, Diverging from the Nikkei

While the Nikkei fell, the TOPIX index closed up 7.83 points at 4,075.12. Of the 33 industry sectors, 20 rose, led by services, construction, other products, and wholesale trade. The biggest decliners were mining, information and communications, and insurance.

Large-cap semiconductor stocks (which carry heavy weight in the price-weighted Nikkei) dragged the index lower, while buying spread across a broad range of other stocks. That’s what created the divergence between the Nikkei and the TOPIX. What I think is worth noting: the headline index looks weak, but the market as a whole wasn’t really selling off across the board.

USD/JPY Holds in the Upper 158 Range, Yen Stays Weak

In Tokyo trading, USD/JPY was around 158.95 yen as of 3:00 PM local time, little changed from the previous close of 158.94 yen (source: Minkabu FX). With the Jackson Hole symposium starting on the 28th and the Fed Chair’s keynote speech in focus, the pair has lacked clear direction.

Background: US Chip Stock Weakness and South Korea’s KOSPI Decline Spilled Over

In US trading on Friday, August 21, the Dow Jones Industrial Average rose 517.80 points (+0.98%) to 53,277.01, the S&P 500 gained 33.21 points (+0.43%) to 7,674.37, and the Nasdaq Composite climbed 329.135 points (+1.29%) to 25,837.207 – all three major indexes finished higher.

However, underneath the surface, semiconductor names were soft: Nvidia (-0.98%), Micron Technology (-0.77%), Applied Materials (-0.78%), and Intel (-2.24%) all declined (source: OANDA Japan). Combined with a decline in South Korea’s KOSPI index on August 24, that weakness spilled over into Tokyo’s chip-related stocks as well. Even with the broader indexes holding up, it’s worth keeping an eye on the pockets of the market under pressure.

Tonight’s US Outlook: Futures Point Higher, All Eyes on Jackson Hole

As of 10:00 AM Tokyo time on August 24, Dow futures were up 440 points (+0.83%) from the previous close, pointing to a higher open for US stocks tonight. That said, CME Nikkei futures (September contract) fell 1,000 points to close at 64,395 on continued chip-stock selling, so Tokyo trading is likely to stay choppy in the near term.

This week’s biggest event is the Jackson Hole symposium (an annual economic conference hosted by the Federal Reserve Bank of Kansas City, closely watched worldwide as a signal for future monetary policy) running August 27-29, with the Fed Chair’s keynote speech as the main focus. On the 25th, several housing- and confidence-related indicators are due: the June Case-Shiller Home Price Index, July New Home Sales, and the August Consumer Confidence Index.

Summary

Here’s today’s recap:

• Nikkei 225: down 488 points to 65,528, second straight decline
• TOPIX: up 7.83 points to 4,075.12, diverging from the Nikkei
• USD/JPY: little changed in the upper 158 range
• Background: US chip stock weakness and South Korea’s KOSPI decline spilling over
• Tonight’s US market: futures point to a higher open, with Jackson Hole as the key event to watch

The headline index looks weak, but what I think is really going on is a correction concentrated in semiconductor names rather than a broad market breakdown. With Jackson Hole coming up this week, I’m expecting bigger swings than usual, so I’ll be keeping a close eye on how my own holdings react.

Previous market recap: [Market Recap] Nikkei Jumps 890 Points to 66,216, Snapping a Two-Day Slide as US Yields Fall – Tonight’s Focus: FOMC Minutes [2026/8/20]

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* This article is for informational purposes only and is not investment advice. Please invest at your own responsibility.