Retail Company Fast Retailing Crashes on Japanese Stock Market

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The Japanese retail company Fast Retailing, owner of clothing chain Uniqlo, went down on the stock exchange in Tokyo on Monday.

 

Investors remained nervous about the soaring inflation in the world, which is putting pressure on the purchasing power of consumers. Rising interest rates and concerns about China’s strict lockdowns also gripped markets.

Partly due to the lockdown in the important Chinese business and port city of Shanghai, Chinese export growth weakened last month to its lowest level in almost two years. However, the increase in exports was higher than economists had expected. The stock market in Shanghai was 0.5 percent lower in the meantime.

The leading Nikkei in Tokyo eventually lost 2.5 percent at 26,319.34 points. Fast Retailing was one of the largest decliners with more than 6 percent loss. The large tech investor SoftBank was also in the tail group with a loss of 3 percent due to price pressure in the US tech sector. Also, tech and game company Sony had to pay with a minus of more than 2 percent.

Investors also processed the new rules of the Chinese internet regulator to protect minors better when playing games and following live streams on the internet. For example, minors are no longer allowed to send virtual gifts on live streaming platforms. Earlier, the government had already decided to limit the screen time of minors.

However, investors had a day off in Hong Kong, where the large Chinese internet and game company Tencent is listed.

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