Markets

A system error paralyzes the Tokyo stock exchange

D.he Tokyo stock exchange suspended trading for the whole day on Thursday. The Tokyo Stock Exchange justified the trading failure with technical difficulties because market data could not be transmitted. Trading on the stock exchanges in Sapporo, North Korea and Fukuoka also failed because they use the same technical system as the Tokyo stock exchange. A spokesman for the Tokyo Stock Exchange told Bloomberg news agency that there was no evidence of a hacker attack on the stock exchange. When the exchange would reopen was initially unclear.

The default hits the market on the first day of the new quarter on which key economic data was released. The Bank of Japan’s quarterly Tankan report indicated that major Japanese companies were slightly less pessimistic about the economic situation than they were in early June. That suggests that the Japanese economy has weathered the worst of the Covid pandemic, which could have boosted the stock market.

Traders also complained that the trade failure would mean missing out on the opportunity to capitalize on the previous day’s rally on American Wall Street. Derivatives trading on the Osaka Stock Exchange was not affected. The futures prices for the Nikkei 225 index rose.

For the Japanese stock exchange, it is the largest trading failure in more than a decade. In 2005, trading was completely suspended for four and a half hours after a system update failed. In January 2006, trading was suspended for a day after a flood of orders overloaded the system. The reason was the opening of an investigation by the Internet company Livedoor, whose rapid development had attracted numerous investors.

Many other major stock exchanges in Asia, such as Shanghai, Hong Kong, South Korea and Taiwan, were closed on Thursday due to public holidays.

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