Japan stocks hit 1-1/2-week low as U.S. tech rout turns contagious
09/09/2020 07:53
TOKYO, Sept 9 (Reuters) - Japanese shares on Wednesday
dropped to their lowest in more than a week as global risk
sentiment soured after an extended selloff in U.S. heavyweight
technology companies.
The benchmark Nikkei share average .N225 closed 1.04%
lower at 23,032.54, while the broader Topix .TOPX lost 0.96%
to 1,605.40.
Both indexes hit their lowest level since Aug. 28.
Optimism that the Bank of Japan would buy exchange-traded
funds to support the market in addition to a higher e-mini
futures for the S&P 500 ESc1 helped curb early declines.
Wall Street closed lower overnight as technology stocks
extended declines, sending the Nasdaq .IXIC into correction
territory. The tech-and-stimulus-led rally halted last week with
the Nasdaq falling as much as 9.9% from its record closing high
as investors booked profits after a run that boosted the index
about 70% from its pandemic-lows. .N
Tokyo-listed technology stocks followed suit, but deputy
head of investment management at Aberdeen Standard Investments
Hisashi Arakawa said the scale of decline was relatively smaller
as Japan's tech valuations were not as overheated as the United
States.
"I think when the market calms down at some point in time,
stocks that have been growing will resume their growth," Arakawa
said.
Shares of SoftBank Group Corp 9984.T dropped 2.87% to post
their fifth consecutive session of losses.
The conglomerate's stock has been falling since sources told
Reuters and other media late last week that it had built up
massive stakes in U.S. tech firms, in addition to purchasing
call options. urn:newsml:reuters.com:*:nL4N2G602G urn:newsml:reuters.com:*:nL1N2G51DO
Other technology companies including Sony Corp 6758.T and
Tokyo Electron 8035.T dropped around 2% each.
Hopes of a quick economic recovery were dampened after
AstraZeneca Plc AZN.L said it has paused a late-stage study of
one of the leading coronavirus vaccine candidates over safety
concern. urn:newsml:reuters.com:*:nL1N2G5276
Energy-related stocks tumbled as oil prices slumped after
Saudi Arabia cut its October selling prices and COVID-19 cases
rebounded in several countries. O/R
Mining .IMING.T led decliners on the main bourse, down
2.55%, while the oil and coal products sector .IPETE.T fell
0.72%.
Shares of oil and gas exploration company INPEX Corp
1605.T dropped 3.06% and Cosmo Energy Holdings Co 5021.T
fell 1.12%.
(Reporting by Eimi Yamamitsu; Editing by Amy Caren Daniel and
Sherry Jacob-Phillips)
((eimi.yamamitsu@thomsonreuters.com;))