Nikkei sinks over 2% as yen surges, KOSPI slumps 4% on chip selloff

Japan’s Nikkei 225 sold off more than 2% as coordinated US-Japan yen intervention sent the yen sharply higher, pressuring exporters and automakers whose overseas profits weaken when translated back into yen. The dollar fell from around 160.20 yen to below 156 yen, its weakest in about three months. The move also left the Nikkei roughly 12.9% below its 2026 peak. In South Korea, the KOSPI fell more than 4% as investors resumed dumping chip leaders Samsung Electronics and SK Hynix amid renewed doubts over AI-linked valuations and hyperscaler demand, despite both posting strong earnings last week. The article highlights how currency intervention and AI sentiment are driving regional equity weakness and exposing markets to continued volatility.