Japan’s Nikkei falls over 2% as chip shares slump, yen firms

Japan's Nikkei share average lost more than 2% on Monday, as chip-related stocks tracked their U.S. peers lower, while the yen's strength also weighed on sentiment. "U.S. chip stocks fell at the end of last week, which helped the Nikkei to enter a correction phase," said Shuji Hosoi, senior strategist, Daiwa Securities. The yen strengthened against the dollar as signs the BOJ will exit negative interest rates at its policy meeting next week, contrasted with expectations for the U.S. Federal Reserve to cut rates in June.