Chemical Stocks Tumble as China Probes Japanese Imports

Japan's chemical stocks fell while China's surged as China's commerce ministry initiated an anti-dumping investigation into chemicals imported for chipmaking. The probe involves imports from Japan amid strained diplomatic ties, coinciding with China's ban on dual-use item exports to Japan.

Shares in Japanese chemical manufacturers took a hit Thursday, as their Chinese counterparts experienced a surge. This market reaction followed an announcement from China's commerce ministry, initiating an anti-dumping investigation into imported chemicals used for chipmaking.

In Tokyo, Shin-Etsu Chemical's shares plummeted by 3.4%, with Mitsubishi Chemical also slipping 0.4%, lagging behind a stagnant benchmark index. Conversely, in China, shares of competitor Tangshan Sunfar Silicon Industries Co soared by the 10% limit, alongside gains for Hubei Heyuan Gas, a producer of silicon-based functional materials.

The investigation into Japanese dichlorosilane imports comes amid heightened diplomatic tensions and China's push for technological self-sufficiency. This week, China further strained relations by banning the export of dual-use items to Japan, following provocative comments from Japan's Prime Minister Sanae Takaichi regarding Taiwan.