TOKYO, May 11 — Tokyo’s benchmark Nikkei index closed down more than three per cent today as tech shares were hit by selling pressure following a plunge in the Nasdaq on Wall Street.

The Nikkei 225 index sank 3.08 per cent, or 909.75 points, to 28,608.59, while the broader Topix index dropped 2.37 per cent, or 46.35 points, to 1,905.92.

Tokyo shares opened sharply lower and extended their losses in afternoon trade after the tech-rich Nasdaq dropped 2.6 per cent yesterday.

"Stocks fell broadly but high-tech shares were hit hard,” Shinichi Yamamoto, a broker at Okasan Securities, told AFP.

"We don’t need to be too pessimistic but trading is expected to remain cautious for now,” Yamamoto said.

Daiwa Securities chief technical analyst Eiji Kinouchi said: "Bargain-hunting is likely to emerge at this level of the Nikkei. Tokyo shares are likely to touch the bottom in a week or so and rebound moderately.”

Investors continued to focus on corporate results as Japan’s earnings season reaches its peak, Kinouchi added.

The dollar stood at ¥108.85 (RM4.11) in Asian afternoon trade, compared with ¥108.77 in New York.

Tech-related shares were among losers. Chip-testing equipment maker Advantest dropped 5.49 per cent to ¥9,640, and Tokyo Electron, a major producer of tools to build semiconductors, lost 4.11 per cent to ¥48,000.

SoftBank Group, which has invested in some of Silicon Valley’s hottest start-ups and tech ventures, plunged 6.50 per cent to ¥9,508.

Nissan, which will release its annual earnings later in the day, fell 0.65 per cent to ¥578.6.

Japan’s top drugmaker Takeda Pharmaceutical gave up earlier gains and closed down 0.21 per cent to ¥3,722.

The company has conducted a trial of Moderna’s coronavirus vaccine in Japan and submitted the results to the government yesterday, confirming the jab’s effectiveness and paving the way for its approval.

The Japanese government, which has so far only approved the Pfizer jab, wants to approve the Moderna vaccine this month to boost its inoculation efforts.

Takeda’s rival Shionogi gained 1.19 per cent to ¥5,866 after its president reportedly said it expects to provide a coronavirus vaccine within the year.

It would be the first domestically produced vaccine in Japan. — AFP