By Reuters Staff
2 Min Read
TOKYO, Feb 26 (Reuters) - Japanese shares dropped on Friday, with the Nikkei on course to log its biggest fall since July, after a spike in global bond yields spooked investors already uneasy about the market’s stretched valuation.
Nikkei average fell 2.54% to 29,400.80, hitting its lowest level in almost three weeks. If sustained, it will be the biggest daily drop since July 31, when it fell 2.82%.
For now, the Nikkei managed to find a support at its 25-day moving average of around 29,200.
The broader Topix lost 1.98% to 1,888.02
Except one, mining shares, all of the Tokyo Stock Exchange’s 33 industry subindexes were in the red, with electronic machinery makers, pharmaceuticals and real estate companies also falling more than 2%.
The selloff in U.S. Treasuries may finally give the bourses of Frankfurt, Paris or Milan a decisive edge for 2021 after five straight years of underperformance against Wall Street.
Japanese shares slumped on Friday, logging their biggest daily decline in nearly a year, after a spike in global bond yields spooked investors already uneasy about the market's stretched valuation.
Global equity funds witnessed higher inflows in the week ended Feb. 24, on optimism that global central banks would keep interest rates lower to prop up their economies, undeterred by rising inflation concerns.
5 Min Read
NEW YORK (Reuters) - The steep slowdown in momentum stocks over the last week has been especially painful for ARK Invest’s Cathie Wood, the top stock picker of 2020.
FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange (NYSE) in New York, U.S., May 22, 2020. REUTERS/Brendan McDermid/File Photo
The $26.6 billion ARK Innovation ETF, which analysts say is beloved by retail investors, is down nearly 11% over the last week, nearly 10 times the slide in the benchmark S&P 500, as companies in its portfolio, like Tesla Inc, have stumbled. The fund has large positions in so-called momentum stocks, which tend to attract investors based on thematic trends rather than fundamentals or valuation.