Japan Nikkei tumbles 2.2%; financial stocks lead losses

Japan share market finished session steep lower on Tuesday, 14 March 2023, extending the losses in the previous two sessions on tracking negative cues from Wall Street overnight, with financial related stocks leading losses as fear of a U.S. banking crisis following the collapse of two regional U.S. banks.

The 225-issue Nikkei Stock Average index tumbled 610.92 points, or 2.19%, to finish at 27,222.04. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 53.45 points, or 2.67%, to 1,947.54.

Total 32 of 33 TSE sectors ended lower along with TOPIX index, with Banks, Insurance, Insurance, Securities & Commodities Futures, Other Financial Business, Iron & Steel, Oil & Coal Products, and Mining issues being notable losers.

US market fell on Monday, as rising concerns over the fallout from the Silicon Valley Bank collapse triggered heavy selling, particularly in the banking sector. Regulators shut down Silicon Valley Bank on Friday and New York-based Signature Bank on Sunday.

CURRENCY NEWS: The U.S. dollar traded in the mid 133 yen level around late afternoon in Tokyo, as traders pile into these safe-haven assets after two US were shuttered over the weekend. The US dollar is moving lower on the back of falling US Treasury yields and a growing sense that the Federal Reserve may pare back or even delay further rate hikes. The dollar fetched 133.58 yen compared with 133.18 yen in Tokyo on Monday.

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