Global Markets: Japan's Nikkei drops nearly 3% as chip stocks slide despite robust TSMC results

Japan's Nikkei dropped 2.8 percent to 66,835.54 while the broader Topix slid 1.5 percent, weighed down by chip stocks despite TSMC posting record Q2 net profit up 77 percent and raising its full-year revenue growth guidance to slightly above 40 percent. Kioxia plunged 15 percent, SoftBank Group slumped 6.3 percent, and Advantest shed 5.9 percent as investors focused on supply-demand imbalances rather than strong fundamentals. Broader sentiment was also pressured by renewed US-Iran conflict in the Middle East.