Japan’s Nikkei share average plunged down to a one-week low on Monday trading action after a pullback on Wall Street clouded a positive U.S. jobs data, and index heavyweight SoftBank Corp jumped in the wake of a sell-off in U.S. tech names.
Traders stated that SoftBank shares have become very sensitive to actions in U.S. tech stocks ahead of Alibaba’s IPO, which is assumed to become one of the biggest offerings in history. Alibaba stated last month that it is planning its primary public offering in the United States.
SoftBank relinquished 4.3 percent down and was the most exchanged stock by turnover.
It was a disappointing session on Wall Street on Friday as last year’s big gainers mostly in the bio tech and tech division damaged with a punishing selloff, taking the gloss off a relatively good U.S. March jobs report.
“SoftBank is a ‘champion stock’ among Japanese tech stocks so foreign investors are unloading it from their portfolios,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “What’s happening in the U.S. market is happening in the Japanese market today.”
The Nikkei gave up 1.6 percent to 14,817.33 in mid-morning exchange after retreating as low as 14,808.81 earlier, the worst since April 1.
Some analysts declared that the progressing U.S. economic outlook will aid to eventually trigger demand for Japanese products and in turn boost the market.
“In the mid-to-long term, a recovery in the U.S. economy will lift demand for Japanese products. It will also lift the dollar level to the yen,” said Kenji Shiomura, an analyst at Daiwa Securities.
On Monday, exporters lost stability after the dollar sagged down from a 2-1/2 month high of 104.13 yen to last stand at 103.25. Honda Motor Co shed 2.1 percent, Hitachi Ltd. slide 2.6 percent lower, and Tokyo Electron Ltd depreciated 3.3 percent.
Taking advantage on the sagged downs, Daiichi Sankyo Co bolstered 5.1 percent to 1,844 yen, the topmost since late January after stating that Sun Pharmaceutical Industries Ltd will purchase its Indian unit Ranbaxy Laboratories Ltd.
The broader Topix index surrendered 1.4 percent to 1,199.21 while the new JPX-Nikkei Index 400 shrank 1.3 percent to 10,882.68.
The material has been provided by InstaForex Company – www.instaforex.com
Japan’s Nikkei share average plunged down to a one-week low on Monday trading action after a pullback on Wall Street clouded a positive U.S. jobs data, and index heavyweight SoftBank Corp jumped in the wake of a sell-off in U.S. tech names.
Traders stated that SoftBank shares have become very sensitive to actions in U.S. tech stocks ahead of Alibaba’s IPO, which is assumed to become one of the biggest offerings in history. Alibaba stated last month that it is planning its primary public offering in the United States.
SoftBank relinquished 4.3 percent down and was the most exchanged stock by turnover.
It was a disappointing session on Wall Street on Friday as last year’s big gainers mostly in the bio tech and tech division damaged with a punishing selloff, taking the gloss off a relatively good U.S. March jobs report.
“SoftBank is a ‘champion stock’ among Japanese tech stocks so foreign investors are unloading it from their portfolios,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “What’s happening in the U.S. market is happening in the Japanese market today.”
The Nikkei gave up 1.6 percent to 14,817.33 in mid-morning exchange after retreating as low as 14,808.81 earlier, the worst since April 1.
Some analysts declared that the progressing U.S. economic outlook will aid to eventually trigger demand for Japanese products and in turn boost the market.
“In the mid-to-long term, a recovery in the U.S. economy will lift demand for Japanese products. It will also lift the dollar level to the yen,” said Kenji Shiomura, an analyst at Daiwa Securities.
On Monday, exporters lost stability after the dollar sagged down from a 2-1/2 month high of 104.13 yen to last stand at 103.25. Honda Motor Co shed 2.1 percent, Hitachi Ltd. slide 2.6 percent lower, and Tokyo Electron Ltd depreciated 3.3 percent.
Taking advantage on the sagged downs, Daiichi Sankyo Co bolstered 5.1 percent to 1,844 yen, the topmost since late January after stating that Sun Pharmaceutical Industries Ltd will purchase its Indian unit Ranbaxy Laboratories Ltd.
The broader Topix index surrendered 1.4 percent to 1,199.21 while the new JPX-Nikkei Index 400 shrank 1.3 percent to 10,882.68.
The material has been provided by InstaForex Company – www.instaforex.com
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