TOKYO (Reuters) – The Tokyo Stock Exchange (TSE) resumed normal trading on Friday, with the main index holding steady a day after the worst-ever outage brought the world’s third-largest equity market to a standstill.

A man works at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon

The glitch was the result of a hardware problem at the bourse’s “Arrowhead” trading system, and a subsequent failure to switch to a back-up. It caused the first full-day suspension since the exchange moved to all-electronic trading in 1999.

Market participants expressed some relief that the problem was hardware-related rather than a cyber attack, but cautioned about a potential longer-term impact given the hit to the Tokyo market’s reputation.

“For now, there’s relief that trade was able to resume,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

“The cause has not been clearly indicated yet, so traders are processing orders that couldn’t be done yesterday as they wait and see how the system works, rather than actively trading.”

The outage had come on a day of high anticipated trade volume following the release of the Bank of Japan’s closely watched tankan corporate survey and a rise on Wall Street.

The meltdown also 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 financial hub.

“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 foreign investors.”

“TRULY REGRETTABLE”

Officials from the Tokyo Stock Exchange and Japan Exchange

By Stanley White and Pete Schroeder

TOKYO/WASHINGTON, Oct 2 (Reuters)Asian markets were little changed on Friday, as a U.S. stimulus deal remained out of reach and investors waited on fresh U.S. employment data for a read on the economic toll from the coronavirus pandemic.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.11%. Australia’s benchmark S&P/ASX 200 index .AXJO fell 0.86% as a decline in oil and copper prices weighed on the resources sector.

Japan’s Nikkei 225 index .N225 was up 0.19% after the Tokyo Stock Exchange (TSE) resumed normal trading after its worst-ever outage brought the world’s third-largest equity market to a standstill.

U.S. stock futures ESc1 fell 0.23% as an additional economic stimulus package remained elusive despite renewed efforts from Washington negotiators.

After a day of negotiations, House Speaker Nancy Pelosi told reporters she did not expect an imminent agreement with the Trump administration. It remains unclear if policymakers can get something done before the Nov. 3 election.

“The risk is that if disposable incomes continue to fall, the recovery in personal spending will slow or even reverse. The fiscal stimulus stalemate suggests additional government support payments to households are unlikely soon,” said Commonwealth Bank of Australia currency analyst Kim Mundy in a note.

China’s stock and bond markets, foreign exchange and commodity futures markets are closed Oct. 1-8 for the Golden Week holiday. South Korea and Hong Kong markets are also closed on Friday for holidays.

U.S. markets kicked off the fourth quarter by closing higher while the dollar sank, with investors tracking stimulus talk updates throughout the day.

The Dow Jones Industrial Average .DJI rose 0.13% on Thursday. The S&P 500 .SPX gained 0.53% and the Nasdaq Composite .IXIC added 1.42%.

U.S. consumer spending is starting to slow due to

By Stanley White and Eimi Yamamitsu

TOKYO (Reuters) – Trading on the Tokyo Stock Exchange was brought to a complete standstill by a hardware failure for all of Thursday, in the worst-ever outage for the world’s third-largest equity market.

Japan’s TSE said it would reopen as usual on Friday, but frustrated investors were left unable to buy shares in Tokyo following an overnight rise on Wall Street.

The outage will test the exchange’s credibility just as new Prime Minister Yoshihide Suga has prioritised digitalisation and could dent Tokyo’s hopes of wooing banks and fund managers from Hong Kong amid a new security law imposed by China.

“I feel painfully responsible for all the confusion this incident has caused for investors and market participants,” TSE Chief Executive Officer Koichiro Miyahara told a news briefing

The TSE said the glitch was the result of a hardware problem at its “Arrowhead” trading system, and a subsequent failure to switch to a back-up. It caused the first full-day suspension since the exchange switched to all-electronic trading in 1999.

Fujitsu Ltd <6702.T>, which developed the trading system, said it was investigating the problem, while the TSE said it has no plan at this point to ask for any compensation.

Tokyo Governor Yuriko Koike said a quick fix was crucial to ensure trust in the roughly $6 trillion market.

“The timing is really just bad,” said Takashi Hiroki, chief strategist at brokerage Monex in Tokyo, adding that many market participants had been hoping to buy back their stocks or increase their holdings after an overnight rise in U.S. markets.

“The market was robbed of that chance,” he added.

The meltdown also coincided with the release of the Bank of Japan’s closely watched tankan corporate survey, which showed business sentiment improved from a decade low.

“It hasn’t

TOKYO (AP) — Shares were higher in Europe and Asia on Thursday, while trading on the Tokyo Stock Exchange was suspended due to a technical failure in its computer systems.

Tokyo Stock Exchange officials said they were working to restore normal trading by Friday morning. They said trading was halted early Thursday because rebooting the huge system would have caused confusion.

TSE President Koichiro Miyahara repeatedly apologized for the disruption to trading on the world’s third largest exchange, where about 70% of brokerage trading both by value and volume is by foreigners.


France’s CAC 40 gained 0.8% in early trading to 4,839.81, while Germany’s DAX edged less than 0.1% higher, to 12,763.27. Britain’s FTSE 100 rose 0.6% to 5,901.48.

U.S. shares were set for gains, with Dow futures up 0.8% to 27,884. S&P 500 futures rose 0.7% to 3,374.62.

In Asia, Australia’s S&P/ASX 200 gained 1.0% in the afternoon to finish at 5,872.90. Trading was closed in South Korea, Hong Kong and mainland China for national holidays.

Share prices also rose in Southeast Asia and India.

The outage on the exchange eclipsed Japan’s main economic news of the day, the first improvement in manufacturing sentiment in three years, despite the pandemic.

Asked how officials planned to take responsibility for the trading outage, a common question in Japan when troubles occur, Miyahara said the exchange would focus on fixing the problem before considering such issues.

He said the exchange will investigate to assess any losses caused to investors.

Previous outages occurred when the “arrowhead” system created by Fujitsu to handle its electronic trading became overwhelmed with too many orders at one time.

Officials said the latest problem was also in a Fujitsu product, but the exchange does not intend to seek damages from the company.

Investors are turning their attention to

TOKYO — Trading on the Tokyo Stock Exchange was suspended Thursday because of a problem in the system for relaying market information. Most other Asian markets were closed for national holidays.

The Tokyo Stock Exchange said that all trading was stopped, including the benchmark Nikkei 225
NIK,
-0.00%
,
because of the problem, and will not resume for the rest of the day. It was unclear when it would be resolved and the system would be operating again.

Elsewhere, Australia’s S&P/ASX 200
XJO,
+0.98%

gained 1.5% in early trading. Trading was closed in South Korea and China for national holidays. Indexes in Singapore
STI,
+1.31%
,
Malaysia
FBMKLCI,
-0.62%

and Indonesia
JAKIDX,
+1.43%

rose.

Details on the Tokyo trading problems were not immediately available. Japan’s nationally circulated Asahi newspaper, without citing sources, said the cause was likely a mechanical failure.

The Tokyo Stock Exchange is the world’s third largest bourse after the New York Stock Exchange and Nasdaq, with market capitalization of nearly $6 trillion.

Previous outages occurred when the “arrowhead” system created by Fujitsu to handle its electronic trading became overwhelmed with too many orders at one time.

That’s what happened on Oct. 9, 2018, according to a release on the TSE’s website. But during that disruption, some backup systems for trading continued to function.

The exchange promised to investigate, conduct malfunction tests and change the system to ensure that a flood of orders would not cause the entire system to stop working. Several top executives of the exchange were penalized.

On Wall Street, prospects for additional support from Congress for the economy helped drive the day’s trading, as they have for weeks. The S&P 500 shot to a gain of as much as 1.7% after Treasury Secretary Steven Mnuchin spoke positively on CNBC before his afternoon talks with