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Japanese shares tumble on tech sell-off, pandemic woes

05/10/2021 23:05
Japanese shares tumble on tech sell-off, pandemic woes

- Japanese shares tumbled on Tuesday, dragged down by technology stocks tracking overnight Wall Street losses, while domestic cyclical stocks also fell on concerns around the nation's worsening situation of the pandemic.

The Nikkei share average .N225 tumbled 2.52% to 28,774.45 by 0158 GMT, while the broader Topix .TOPX lost 1.84% to 1,916.40.

Wall Street closed lower on Monday as inflation concerns drove investors away from market-leading growth stocks in favor of cyclicals. .N

The prolonged pandemic added to the negative sentiment, with calls for expanding the state of emergency, which covers major prefectures such as Tokyo and Osaka.

Some prefectural governors called for stronger emergency measures to be put in place nationwide, the Kyodo news agency reported. nL4N2MY0MU

"Atmosphere in the market is bad," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"Even domestic cyclical shares, which should be bought on the day like today, were being sold. Investors could not find any reasons to buy Japanese stocks at a time when the pandemic in Japan shows little signs for slowing down."

Technolgy heavyweights fell, with SoftBank Group 9984.T tumbling 6.01%, Tokyo Electron 8035.T falling 4.08%, TDK 6762.T losing 5.8%.

Shionogi & Co 4507.T inched up only 0.1% despite a local media report that said the drug maker may start supplying COVID-19 vaccines later this year. nT9N2MD022

Nippon Telegraph and Telephone Corp 9432.T, up 1 %, was the largest percentage gainer among the top 30 core Topix names, followed by KDDI Corp 9433.T, inching up 0.26%.

SoftBank Group was the worst performer among the Topix 30 names, followed by Daiichi Sankyo 4568.T losing 4.07%.

There were 14 advancers on the Nikkei index against 210 decliners.


(Reporting by Junko Fujita; Editing by Rashmi Aich)

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