The Tokyo Stock Exchange resumed trading that is normal Friday, with the primary index starting slightly higher each and every day after the worst-ever outage brought the planet’s third-largest equity market to a standstill.
The glitch was the result of hardware problem at the bourse’s “Arrowhead” trading system, and a failure that is subsequent switch to a back-up, causing the first full-day suspension system since the exchange moved to all-electronic trading in 1999.
Market participants indicated some relief that the problem was hardware-related rather compared to a cyber attack, but cautioned about a possible impact that is longer-term the hit to the Tokyo market’s reputation.
“For now, there’s relief that trade had been able to resume,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui (NYSE:SMFG) DS Asset Management.
“The cause has perhaps not been clearly indicated yet, so traders are processing orders that couldn’t be done as they wait to check out how the system works, rather than actively trading. yesterday”
The outage had come on a day of high trade that is anticipated following the production of the lender of Japan’s closely watched tankan corporate study and an increase on Wall Street.
The meltdown additionally occurred just two weeks into new Prime Minister Yoshihide Suga’s term – during which he has prioritised digitalisation – and undermined Tokyo’s hopes of replacing Hong Kong as an Asian hub that is monetary.
“It’s problematic that this happened after the TSE upgraded its system as recently as 2019,” said Takatoshi Itoshima, strategist at Pictet Asset Management. “IoT (Internet of Things) related shares are meant to be the leader of ‘Suganomics’ trade but this won’t impress international investors.”
Officials through the Tokyo inventory Exchange and Japan Exchange Group Inc (T:8697), which operates the bourse, apologised for the debacle on Thursday and said the cause that is fundamental still unknown.
The TSE system’s developer, Fujitsu Ltd (T:6702), also said and apologised any findings would be disclosed through the exchange. It declined to comment on any compensation issues, while TSE Chief Executive Officer Koichiro Miyahara said the bourse had no plans for now for any compensation claims, taking responsibility that is full for the shutdown.
Shares in Fujitsu fell more than 3% in early trade, while Japan Exchange Group lost 0.8%, underperforming the TOPIX that is main (TOPX). The Tokyo Stock Exchange resumed trading that is normal Friday.