On Thursday, the Tokyo Stock Exchange suspended trading of shares for the entire day following a glitch in its electronic trading system.
The Tokyo Stock Exchange is the world’s third-biggest stock market.
The outage has frustrated investor efforts to buy back shares following the first U.S. presidential debate and is likely to take a toll on Prime Minister Yoshihide Suga effort to digitise the country’s economy.
The development comes at a time when Japan is making efforts to attract more investments from Hong Kong midst concerns of China imposing its draconian security law in the territory.
“The timing is really just bad,” opined Takashi Hiroki, chief strategist at brokerage Monex regarding the glitch while adding, market participants were hoping to buy back shares following the overnight rise on Wall Street.
“The market was robbed of that chance.”
The Tokyo Stock Exchange blamed the outage on a hardware problem at its “Arrowhead” trading system, which was supposed to switch over to a backup device.
This is the first full-day suspension of trading in the stock exchange since electronic trading began in 1999.
“TSE is currently planning to replace the hardware and taking steps, including other maintenance, to ensure normal trading from tomorrow onwards,” said the Japan Exchange Group which runs the TSE.
The TSE’s CEO Koichiro Miyahara is slated to hold a news conference at 4:30 p.m. (0730 GMT).
“We have to make sure this kind of situation is never repeated,” said Katsunobu Kato, a top spokesman for the Japanese government while terming the incident as being “extremely regrettable”.
Tokyo Governor Yuriko Koike said a quick fix was crucial to ensure trust in the market.
In recent years, although the Shanghai Stock Exchange has eclipsed Tokyo, the latter is still seen as a global center and a destination for foreign investors.