Central bank tightening stage
Soft Bank Group Corp. was one of the largest losers in the Asian tech sector sell-off on Thursday, as investors lost faith in billionaire Masayoshi Son’s company as central bank restrictions began.
As Nasdaq futures sank, as did stocks in the world’s largest investment firm, Alibaba Group Holding Ltd. — in Hong Kong, the bank’s stock fell 9.8%, the most since March 2020.
The fall in SoftBank’s value could increase pressure on its financial structure
Shareholders have been betting against tech firms, which have mostly driven to the recent advance in international markets, due to hawkish signals from Federal Reserve Chairman Jerome Powell.
“For the present asset bubbles, SoftBank is a showcase for an overleveraged corporation.” The fund’s recent dip in price may put more strain on its financial system, according to Amir Anvarzadeh, senior strategist at Asymmetric Advisors Pte., who advises trading it.
SoftBank shares fell to their lowest level since May 2020, driven down by news that a planned sale of Arm Ltd.’s semiconductor division to Nvidia Corporation is unlikely to go through. According to analysts, the deal’s failure could result in a credit rating fall.
The investing behemoth wasn’t alone. Sony Group, which, unlike SoftBank, has stable earnings and anticipates the strongest year of profitability, dropped as high as 8%, while the Nikkei 225 index in Japan dropped 3.6 percent, the worst intraday drop since February 2021.
The Kosdaq in South Korea sank over 4%, despite Samsung Electronics Co., the country’s largest corporation, falling less than the market after announcing record quarterly sales. The Hang Seng Technology Index in Hong Kong fell 4.7 percent.