Japan's Nikkei slumps as chip selloff, geopolitical tensions dent risk appetite

By Satoshi Sugiyama

TOKYO, June 11 (Reuters) - Japan's Nikkei share average fell on Thursday, weighed by a selloff in chip-related stocks, while escalating U.S.-Iran tensions reignited inflation concerns and prompted investors to shun risky assets.

The Nikkei .N225 was down 1.3% at 63,360.96, as of 0046 GMT. Earlier in the session, the benchmark fell as much as nearly 3%, slipping below the 63,000 level for the first time since May 22. The broader Topix .TOPX slid 1.6% to 3,787.08.

Washington carried out renewed strikes against multiple targets overnight in Iran, the U.S. military said on Wednesday, hours after President Donald Trump vowed new attacks if no peace deal is secured.

Tech investment conglomerate SoftBank Group 9984.T dragged the Nikkei index by 233 points, down 3.6%. Fujikura 5803.T, which produces optical fibre that is a key component of AI data centres, lost 6%, while semiconductor testing equipment maker Advantest 6857.T shed 3.7%.

There were 184 decliners in the Nikkei index against 40 advancers.



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