Japan-South Korea spat takes a toll on Tokyo tech shares

Investors sell Japanese chemical companies and buy US chipmakers

20190702N micron technology chip (REUTERS)

U.S. chipmaker Micron Technology's stock price shot up on Monday on the American stock market. © Reuters

HIROFUMI TAKEUCHI, Nikkei staff writer

TOKYO -- Stocks in Japanese suppliers of chemicals and materials needed to fabricate semiconductors have taken a beating ever since the government announced Monday that it will restrict exports of chipmaking materials to South Korea.

As of Tuesday, Stella Chemifa and Showa Denko, which handle etching materials, had both slipped around 1% since the announcement. JSR, a major supplier of photoresists, plunged 5% at one point on Monday but recovered the next day so that it actually rose 0.8% over two days. But that was short of the 2.2% two-day gain for the Nikkei Stock Average.

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