Stock values fall in Japan

<p>Stock values in Japan have fallen to a one-week low.</p>

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.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.