[Tokyo 13eg Reuters]- The Nikkei Stock Average fell sharply to 27,832.96 yen, down 311.01 yen from the previous business day. Risk aversion selling was preceded by disgust over the bankruptcy of the US Silicon Valley Bank, and the temporary decline was more than 500 yen. In addition to large stocks, selling pressure in the financial sector such as banking and insurance stocks has increased.
The Nikkei average widened the range of the decline even after approaching 257 yen lower, and became a breakthrough from almost all declines. Following the failure of Silicon Valley Bank, news of the collapse of US Signature Bank weighed on investor sentiment. The sale took a break in the aftermarket, and the size of the discount narrowed towards the end.
Shigetoshi Kamata, general manager of the corporate research department at Tachibana Securities, said, “I get the impression that Japanese stocks are holding their ground despite the bankruptcies of the two banks.” Compared to the United States, where the economy is expected to slow down in the future, Japan’s economy is expected to improve seriously and the number of foreign visitors to Japan can be expected to increase further, I think it will be a helpline .
In the US market last week, Fed Chairman Jerome Powell’s hawkish comments suggested a new acceleration of monetary tightening. However, following subdued wage inflation in the February US employment statistics and the subsequent bankruptcies of two US banks, the market has pegged the rate hike at the next Federal Open Market Committee (FOMC) meeting ) at “0.00%.” We are starting to include 25%,” said Kamata. He also believed that the Fed would have the option of not raising rates in the event of a crisis.
TOPIX fell 1.51% to 2000.99 points. The Tokyo Stock Exchange’s prime market index fell 1.51% to 1029.61 points. The Tokyo Stock Exchange’s primary market trading value is 3,128,521 million yen. Of the 33 industries on the Tokyo Stock Exchange, 31 declined such as banking, insurance and securities. Prices rose in two sectors, shipping and mining.
Major banks were generally weak, with Mizuho Financial Group down 4.9%, Mitsubishi UFJ Financial Group down 3.4%, and Sumitomo Mitsui Financial Group down 4.1%. Regional banks such as Toyama Daiichi Bank also saw a notable decline.
Auto-related companies such as Mitsubishi Motors and Honda were also selling as the Yen was stronger than it was during the previous weekend’s trading hours. On the other hand, Fast Retailing, which makes a major contribution to the index, was moderate at 0.4%.
In the main market, 171 stocks rose (9%), 1,639 stocks fell (89%), and 25 stocks (1%) remained unchanged.
