TOKYO (Reuters) – The Tokyo Stock Exchange on Thursday suspended stock trading for the entire day as a glitch in its electronic trading system, causing the world’s third-largest stock market to suffer the most.
Shutdown Disappointed investors tried to buy back the shares after the first US presidential debate, and the new Prime Minister may tarnish the exchange’s credibility as Yoshihida Suga.
It also comes as Tokyo is hoping to attract more banks and fund managers from Hong Kong amid concerns from businesses over a new security law imposed from China.
“The timing is really very bad,” said Takashi Hiroki, chief strategist at brokerage Monex in Tokyo.
Many market participants were hoping to buy back their shares or increase their stake after an overnight hike on Wall Street.
“That opportunity in the market was robbed.”
The exchange blamed the outage on a hardware issue in its “arrowhead” trading system, and later a failure to switch to a backup device. It was the first full-day suspension on the Boers since all-electronic trading began in 1999.
“TSE is currently planning to take steps, including replacing hardware and other maintenance, to ensure normal trading from tomorrow,” Japan Exchange Group 8697.T, Which runs TSE, said in a statement.
Kochiro Miyhara, Chief Executive Officer of TSE, will hold a press conference at 4:30 pm (0730 GMT).
Regional markets in Chhote, Nagoya, Fukuoka and Sapporo were also forced to suspend trade as they use TSE’s system. It is the only equity market still operating as a derivative-focused Osaka exchange.
Nikkei Futures JNIc1, Which trades in Osaka, rose 0.56% on Thursday, with an increase in US stocks overnight.
Katsunobu Kato, a spokesman for Japan’s top government, described the incident as extremely regrettable at a news conference, saying, “We have to make sure that such a situation is never repeated.”
Tokyo Governor Yuriko Koike said a quick fix was important to ensure market confidence.
According to data from the World Federation of Exchanges, Tokyo’s nearly $ 6 trillion market now ranks as the world’s third largest, after New York and Shanghai.
While Tokyo has been eclipsed by Shanghai’s market in recent years, it is still a global hub and a destination for foreign investors.
TSE has suffered from technical troubles in the past and was notorious for sluggish trading, although there have been very few technical problems since the introduction of a new system in 2010. [L4N2GS0TH]
Fujitsu Ltd 6702.T, Which developed the trading system, said it was investigating the problem.
Nikkei .N225 It fell 1.5% on Wednesday, its biggest drop in two months, as a heated debate between US President Donald Trump and Democrat Joe Biden exposed the risk of an inconclusive result for the presidential election in November.
Reporting by Stanley White, Imi Yamamitsu, Hideyuki Sano, Chang-ran Kim, Takashi Umakeva, Sakura Murakami; Editing by Kim Coghill, David Dolan and Simon Cameron-Moore