TOKYO, Sept 9 (Reuters) - Japanese shares on Wednesday
dropped to their lowest in more than a week as global risk
sentiment soured after an extended selloff in U.S. heavyweight
The benchmark Nikkei share average closed 1.04%
lower at 23,032.54, while the broader Topix lost 0.96%
Both indexes hit their lowest level since Aug. 28.
Optimism that the Bank of Japan would buy exchange-traded
funds to support the market in addition to a higher e-mini
futures for the S&P 500 helped curb early declines.
Wall Street closed lower overnight as technology stocks
extended declines, sending the Nasdaq into correction
territory. The tech-and-stimulus-led rally halted last week with
the Nasdaq falling as much as 9.9% from its record closing high
as investors booked profits after a run that boosted the index
about 70% from its pandemic-lows.
Tokyo-listed technology stocks followed suit, but deputy
head of investment management at Aberdeen Standard Investments
Hisashi Arakawa said the scale of decline was relatively smaller
as Japan's tech valuations were not as overheated as the United
"I think when the market calms down at some point in time,
stocks that have been growing will resume their growth," Arakawa
Shares of SoftBank Group Corp dropped 2.87% to post
their fifth consecutive session of losses.
The conglomerate's stock has been falling since sources told
Reuters and other media late last week that it had built up
massive stakes in U.S. tech firms, in addition to purchasing
Other technology companies including Sony Corp and
Tokyo Electron dropped around 2% each.
Hopes of a quick economic recovery were dampened after
AstraZeneca Plc said it has paused a late-stage study of
one of the leading coronavirus vaccine candidates over safety
Energy-related stocks tumbled as oil prices slumped after
Saudi Arabia cut its October selling prices and COVID-19 cases
rebounded in several countries.
Mining led decliners on the main bourse, down
2.55%, while the oil and coal products sector fell
Shares of oil and gas exploration company INPEX Corp
dropped 3.06% and Cosmo Energy Holdings Co
(Reporting by Eimi Yamamitsu; Editing by Amy Caren Daniel and