TOKYO, May 13 Reuters Japanese shares sank on Thursday, with the Nikkei average hitting a fourmonth low, as SoftBank Group and expensive stocks were pummelled by U.S. inflation scare.
The Nikkei dropped 2.49 to 27,448.01, hitting its lowest level since early January. Over the past three sessions, the index has lost 7.01, its biggest threeday fall since the market turmoil in March 2020.
The broader Topix shed 1.54 to 1,849.04, touching a threemonth low.
Inflation worries are hitting hightech stocks while rising domestic coronavirus infections are raising concerns about political stability. And, companies guidance is pretty soft, said a strategist at a Japanese brokerage.
But I do expect the market to bottom out soon. You cant keep selling forever when earnings are still improving.
A shocking rise in U.S. inflation published on Wednesday fanned worries U.S. interest rates may need to rise sooner than expected.
That bludgeoned Wall Street overnight, especially tech shares whose high valuations have been based on the assumption of low interest rates, and hit Japanese equivalents as well.
SoftBank Group dropped 7.8 as concern over its frothy portfolio valuations eclipsed the fact that it has announced a record profit for a Japanese firm.
Other richly valued shares, mainly from the tech and healthcare sectors, fell sharply, with medical equipment maker Terumo down 4.4, chipmaking machine maker Tokyo Electron losing 4.7 and medical diagnostics products maker Sysmex…