SoftBank shares tumble 9% as investors turn sour on Alibaba

Masayoshi Son, Chairman and CEO of SoftBank Group at the SoftBank World 2018 event in Tokyo, Japan.

Kiyoshi Ota | Bloomberg | Getty Images

SoftBank’s share price fell 9% on Thursday as investors paid out their positions in Asian technology stocks.

The conglomerate, which has invested billions in tech companies around the world, saw its share price fall as much as 9.8% to 4,652 Japanese yen ($ 40.39) on the Tokyo Stock Exchange – its biggest drop since March 2020.

The collapse coincided with a disappointing trading day for SoftBank’s largest investment, Alibaba, which saw its share price fall by more than 7% on Hong Kong shares. It also comes amid reports that SoftBank may not be able to sell UK chip designer Arm to Nvidia for $ 40 billion due to a series of ongoing regulatory investigations.

Elsewhere, with headquarters in Tokyo, Sony saw its share price fall as much as 8% despite having more predictable revenue and revenue streams than SoftBank. It also predicts a record year of profits.

More generally, the markets in Asia and the Pacific were in minus Thursday night. Japan’s Nikkei 225 fell 3.3%, while Topix fell 2.3%. In South Korea, the benchmark Kospi fell 3.13%, and in Hong Kong the Hang Seng Index and the Hang Seng Tech Index fell by 2.56% and 4.61% respectively. Chinese mainland stocks also fell.

Many of the world’s most well-known technology stocks saw their market value in 2021, but the trend has not continued into 2020, when tens of billions of dollars were knocked out of some companies’ valuations.

Global markets are reacting poorly to the Federal Reserve’s indication on Wednesday that it may soon raise interest rates for the first time in more than three years.

US stocks rose at first, even after news from the Federal Reserve, but the mood changed from one day to the next. U.S. stock futures fell Thursday morning, indicating a markedly lower opening on Wall Street.

– CNBC’s Elliot Smith and Holly Ellyatt also contributed to this article.

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