End seen approaching for Nasdaq Japan


Masayoshi Son's Softbank has a 43% stake in the Nasdaq Japan venture

Staff and wires

TOKYO, Japan -- Nasdaq Japan, a joint venture between the U.S. Nasdaq Stock Market and Japanese Internet company Softbank Corp., will suspend operations on Friday, according to a report in the Nihon Keizai business daily.

There has been speculation over the past week that the joint venture would cease and that Nasdaq would withdraw completely from Japan.

The move will affect almost 100 companies listed on the Nasdaq Japan market.

Nasdaq Japan will make the announcement on Friday, following an extraordinary board meeting, the Nihon Keizai said.

When the Nasdaq Japan market for emerging companies was set up two years ago it was intended to be part of a global Nasdaq network allowing around-the-clock trading in Japan, the U.S. and Europe.

According to the Nikkei report, Nasdaq Japan will keep its partnership with the Osaka Securities Exchange through to the end of the year, and will allow investors to trade issues now listed on Nasdaq Japan.

Softbank shares slipped

The Nasdaq Japan Market began trading in June 2000. Nasdaq Japan had cumulative losses of about 5.3 billion yen ($45 million) at the end of last year.

Softbank, which holds 43 percent of the joint venture and is controlled by Internet pioneer Masayoshi Son, has seen its shares slip this week on reports that operations would likely come to an end.

Softbank is trading Friday at 1258 yen, up about 1 percent after going as low as 1061 yen last Friday. That was its lowest price since January 1998.