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Japan Nikkei tumbles on fears of financial crisis

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Capital Market
Last Updated : Mar 16 2023 | 4:04 PM IST
Japan share market finished session lower on Thursday, 16 March 2023, despite positive core machinery orders and trade balance data, as risk aversion selloff triggered due to renewed fears about the health of the global banking system amid fresh turbulence at Credit Suisse after the recent collapse of two U.S. regional banks.

The 225-issue Nikkei Stock Average index was down 218.87 points, or 0.8%, to finish at 27,010.61. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 23.02 points, or 1.17%, to 1,937.10.

All industry categories except information and communication issues declined, led by bank, insurance, and iron and steel shares.

Shares of banks fell as the collapse of Silicon Valley Bank and Signature Bank had already left investors in panic mode and scrambling to sell when news of trouble at Credit Suisse added to their dismay. In the banking sector, Mizuho Financial Group plunged 3.8% to 1,832.5 yen and Mitsubishi UFJ Financial Group dived 2.8% to 837.6 yen.

ECONOMIC NEWS: Japan Core Machine Orders Rise 9.5% In January - The value of core machine orders in Japan was up a seasonally adjusted 9.5% on month in January, the Cabinet Office said on Thursday - coming in at 929.6 billion yen. On a yearly basis, orders improved 4.5% - again topping expectations for a fall of 3.5% following the 6.6% decline in the previous month. For the first quarter of 2023, core machine orders are forecast to rise 2.9% on quarter and 3.3% on year. The total value of machinery orders received by 280 manufacturers operating in Japan slumped 10.2% on month in January.

Japan Reports Y897.7 Billion Trade Deficit In February- Japan posted a merchandise trade deficit of 897.7 billion yen in February, the Ministry of Finance reported. Exports were up 6.5% on year to 7.654 trillion yen - missing forecasts for an increase of 7.1% but up from the 3.5% gain in the previous month. Imports climbed an annual 8.3% to 8.552 trillion yen versus expectations for an increase of 12.2% and slowing from 17/5% a month earlier.

CURRENCY NEWS: The U.S. dollar weakened to the upper 132-yen range in Tokyo as investors fled to the perceived safety of the Japanese currency amid concern about the financial system in Europe

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First Published: Mar 16 2023 | 3:57 PM IST

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