Stock values in Japan fell on Monday (April 7th), caused by a selloff in the technology sector and a higher yen.
The Nikkei decreased by 1.6 per cent, with the Japanese telecommunications and internet corporation Softbank bearing the biggest fall (four per cent).
This dramatic slump has largely been down to trade being conducted in the US ahead of Alibaba’s IPO, which many industry analysts believe could be one of the largest offerings in history.
"SoftBank is a 'champion stock' among Japanese tech stocks so foreign investors are unloading it from their portfolios," Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, was quoted by Reuters as saying.
"What's happening in the US market is happening in the Japanese market today."
Despite the fall, the long-term outlook for the Japanese tech stock market and economy is positive, as the US recovery will lead to an increased demand for products produced in the Asian country.
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