Japanese Market Sharply Lower

The Japanese stock market is sharply lower on Monday, extending the losses in the previous session, with the Nikkei 225 falling below the 27,700 level, following the broadly negative cues from global markets on Friday, with losses across most sectors, led by financial and technology stocks. Traders are cautious amid the biggest US bank failure since the 2008 financial crisis.

The benchmark Nikkei 225 Index is down 460.07 or 1.63 percent at 27,683.90, after hitting a low of 27,631.53 earlier. Japanese shares ended sharply lower on Friday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is losing almost 3 percent and Toyota is down more than 2 percent.

In the tech space, Screen Holdings and Advantest are losing almost 2 percent each, while Tokyo Electron is down more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is losing 4.5 percent, Mitsubishi UFJ Financial is declining more than 3 percent and Mizuho Financial is plunging more than 5 percent.

The major exporters are lower. Canon is losing more than 2 percent and Panasonic is down almost 3 percent, while Sony and Mitsubishi Electric are declining almost 2 percent each.

Among the other major losers, Mitsubishi Motors is plunging more than 6 percent, while Chiba Bank, Shizuoka Financial Group and Fukuoka Financial Group are slipping more than 5 percent each. Resona Holdings, Concordia Financial Group, Mizuho Financial Group and Nissan Motor are declining almost 5 percent. MS&AD Insurance Group, Toppan and T&D Holdings are sliding more than 4 percent each, while NTN, Nippon Sheet Glass and Aozora Bank are down almost 4 percent each.

Conversely, there are no other major gainers.

In the currency market, the U.S. dollar is trading in the higher 134 yen-range on Monday.

On Wall Street, stocks tumbled on Friday and the major averages all ended notably lower as concerns about the potential fallout from the implosions of Silicon Valley Bank (SVB) and Silvergate Capital triggered a sell-off in the financial sector. Investors also digested the crucial non-farm payroll data for the month of February.

The major averages finished the session sharply lower. The Dow ended down 345.22 points or 1.07 percent at 31,909.64. The S&P 500 closed lower by 56.73 points or 1.45 percent at 3,861.59, while the Nasdaq dropped 199.47 points or 1.76 percent to settle at 11,138.89.

The major European markets also moved sharply to the downside on the day. The U.K.’s FTSE 100 dropped 1.67 percent, while Germany’s DAX and France’s CAC ended lower by 1.31 percent and 1.3 percent, respectively.

Crude oil prices climbed higher on Friday on Russia’s decision to trim oil output by 500,000 barrels per day in March. West Texas Intermediate Crude oil futures for April ended higher by $0.96 or 1.3 percent at $76.68 a barrel, rebounding after three successive days of losses.

Market Analysis