Tokyo's Nikkei closes down more than 3% on tech sell-off
- Tokyo shares opened sharply lower and extended their losses in afternoon trade after the tech-rich Nasdaq dropped 2.6% on Monday.
Tokyo's benchmark Nikkei index closed down more than three percent Tuesday as tech shares were hit by selling pressure following a plunge in the Nasdaq on Wall Street.
The Nikkei 225 index sank 3.08%, or 909.75 points, to 28 608.59, while the broader Topix index dropped 2.37%, or 46.35 points, to 1 905.92.
Tokyo shares opened sharply lower and extended their losses in afternoon trade after the tech-rich Nasdaq dropped 2.6% Monday.
"Stocks fell broadly but high-tech shares were hit hard," Shinichi Yamamoto, a broker at Okasan Securities, told AFP.
"We don't need to be too pessimistic but trading is expected to remain cautious for now," Yamamoto said.
Daiwa Securities chief technical analyst Eiji Kinouchi said: "Bargain-hunting is likely to emerge at this level of the Nikkei. Tokyo shares are likely to touch the bottom in a week or so and rebound moderately."
Investors continued to focus on corporate results as Japan's earnings season reaches its peak, Kinouchi added.
The dollar stood at 108.85 yen in Asian afternoon trade, compared with 108.77 yen in New York.
Tech-related shares were among losers. Chip-testing equipment maker Advantest dropped 5.49% to 9 640 yen, and Tokyo Electron, a major producer of tools to build semiconductors, lost 4.11% to 48 000 yen.
SoftBank Group, which has invested in some of Silicon Valley's hottest start-ups and tech ventures, plunged 6.50 percent to 9,508 yen.
Nissan, which will release its annual earnings later in the day, fell 0.65% to 578.6 yen.
Japan's top drugmaker Takeda Pharmaceutical gave up earlier gains and closed down 0.21% to 3 722 yen.
The company has conducted a trial of Moderna's coronavirus vaccine in Japan and submitted the results to the government on Monday, confirming the jab's effectiveness and paving the way for its approval.
The Japanese government, which has so far only approved the Pfizer jab, wants to approve the Moderna vaccine this month to boost its inoculation efforts.
Takeda's rival Shionogi gained 1.19% to 5 866 yen after its president reportedly said it expects to provide a coronavirus vaccine within the year.
It would be the first domestically produced vaccine in Japan.