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A tech network problem forced the operator of the Tokyo Stock Exchange to halt trading on Thursday, freezing buying and selling in thousands of shares on the first day of this new quarter, just as key financial data was being published.

Sales for shares were refused and Japan Exchange Group Inc. said it doesn’t understand when the operational system will be restored. There was no indication that the halt ended up being related to hacking, in accordance with a spokesperson for the bourse operator

. The exchange early in the day said the nagging problem had been associated with the distribution of market information.

Final Trading of The Year At The Tokyo Stock Exchange day
The Tokyo Stock Exchange (TSE) building in Tokyo.Photographer: Kiyoshi Ota/Bloomberg
The issue dampens investor sentiment following a U.S. that is positive stock performance overnight and closures in other major markets in the area, including Hong Kong, Southern Korea and Taiwan. Chinese markets are shuttered until Oct. 9 for its Golden vacation period week.

“This is very problematic — when things such as this happen, investor confidence in the market that is japanese impacted,” said Ryuta Otsuka, a strategist at Toyo Securities Co. “It could later weigh on Japanese stocks.”

Global markets take a state that is heightened of to any glitches after a cyber attack in New Zealand that spurred trading halts over four days in August.

Other markets within the country, including exchanges in Sapporo, Nagoya, and Fukuoka, also suspended trading. Derivatives, including futures, trade regarding the Osaka Exchange, which does not appear to be impacted by the device issue. Futures on the Nikkei 225 Stock Average were up 0.5% in Osaka at the time of 11:23 a.m. local time. A tech network problem forced the operator of the Tokyo Stock Exchange.

Confidence Blow
The benchmark Topix index fell 2% yesterday, trimming its gain for September to 0.5% and closing the quarter that is latest with a 4.3% advance. A equity that is tokyo-based at a local brokerage said mutual investment flows for the beginning of the thirty days and second half of the fiscal year will now be queued up, which could increase volatility the next day if the bourse does not open today.

Japan’s $6.15 trillion stock market is the third-largest in the global world behind the U.S. and China. There are 2,167 stocks listed in the the top section of the Tokyo Stock Exchange, where total daily turnover has averaged about $22 billion within the year that is past.

Makoto Sengoku, a market analyst at Tokai Tokyo Research Institute Co., said he’ll be watching the reaction in the TSE Mothers Index, the performance that is primary for start-up companies in Japan. “For retail investors that are trading everyday, might be described as a shock, however for those who aren’t frequently trading its not as impactful,” he said today.


Shiomi Saito

Shiomi Saito is a well known finance expert. She has served over 20 years in the finance Industry across Europe and Asia. In the past, she has held managerial positions in reputable global rating agencies and multinational banks. She has also managed regional teams across Europe and Asia which focused on analytics related to both corporate and financial Institutions. She is experienced in building index products for investment banks and multinational banks, risk management and analytics, key risk drivers including FX, geopolitical credit as well as macro over a wide range of sectors. She is also a finance writer and has written extensively for larger audiences. She is currently focused on the development of financial markets, in Currencies, commodities, alternative asset classes and global equities. She has been an author with MetaNews since Dec, 2013.
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