Japan Shares at Their Lowest Level in a Week And Half

Japanese stocks hit their lowest levels in more than a week on Wednesday, September 9th, in light of global risk aversion as heavy technology companies continued losses in the United States.

The Nikkei index closed 1.04% lower at 2,3032.54 points, while the broader TOPIX index lost 0.96% to 1,605.40 points. The two indices are at their lowest levels since August 28.

Wall Street closed lower overnight as technology stocks continued losses, forcing the Nasdaq index to begin a correction. The upward trend led by technology stocks and stimulus measures was halted last week, and the Nasdaq index fell 9.9% from a record closing high as investors reaped profits after the index rose about 70% from its lows due to the pandemic.

Tokyo-listed technology stocks tracked the losses, but Aberdeen Investment Standard Vice President Hisashi Arakawa said the extent of the decline was relatively smaller because valuations of technology stocks in Japan were not overvalued as they are in the United States.

SoftBank Group shares fell by 2.87%, posting losses for the fifth consecutive session.