Nikkei 225 falls sharply on chip outlook, Middle East tensions

Tokyo stocks fell sharply on Friday amid concern about slowing semiconductor demand and worries conflict could spread in the Middle East.

Investors unloaded shares across the board with chip-related stocks bearing the brunt of the sales. The benchmark Nikkei 225 stock index briefly lost more than 1,300 points or 3.5 percent.

This followed TSMC saying it had cut its growth forecast for the semiconductor market. The world's biggest contract chipmaker made the comment on Thursday.

Broader sell orders then picked up pace following media reports of explosions in central Iran on Friday.