Japan's Nikkei 225 slipped 0.6% to around 63,300 on Tuesday, extending Monday's 1.4% drop. The decline came even after Tokyo and Washington confirmed their first coordinated yen-buying operation in decades — a joint effort led by Finance Minister Satsuki Katayama and Treasury Secretary Scott Bessent to prop up the currency.
Rare joint intervention
The intervention pushed the yen up as much as 3.8% over two sessions, with the currency settling near 155-157 per dollar. Officials have signaled they will step in again if the yen slides back toward recent lows. The Bank of Japan held its benchmark rate at 1% last week but left the door open to a hike; the next policy meeting is in September. Bessent has repeatedly pushed BOJ Governor Kazuo Ueda toward further tightening.
Kioxia's earnings miss and stock split
Kioxia Holdings, an export-heavy memory chipmaker, reported fiscal first-half operating income guidance that missed analyst estimates on July 31. The same day, the company announced a three-for-one stock split and a share buyback — moves that did not address the underlying earnings shortfall. A stronger yen reduces the value of Kioxia's overseas sales, and its stock had already plunged 65% from June highs before the earnings report.
Chip stocks lead the pullback
SoftBank Group and Advantest declined as chip stocks led Tuesday's broader market slide. Global memory chip prices remain volatile, and the AI chip trade has wobbled through July. Korean rivals SK Hynix and Samsung Electronics posted sharp moves in recent sessions, adding to the uncertainty around the sector.
The BOJ's next rate decision in September will be closely watched, as will any further intervention by Tokyo and Washington if the yen weakens again.
