Business
SoftBank stock drops after horrible earnings report – the Asian market last
Japan's wider Nikkei ( N225 ) was largely flat in the afternoon trade. South Korea's Kospi Index ( KOSPI ) fell 0.1%.
Hong Kong & # 39; s Hang Seng Index ( HSI ) fell 0.4%, while China's Shanghai Composite ( SHCOMP ) drops 0.2%.
SoftBank ( SFTBF ) reported a loss of $ 6.5 billion after the market close on Wednesday, weighed down by a huge hit for the technology fund. Vision Fund has been hit by major losses in portfolio companies such as Uber ( UBER ) and WeWork.
The stock recovered some of its losses in the middle of Thursday morning and last traded at around 2.5%.
SoftBank founder and CEO Masayoshi Son admitted he turned a "blind eye" to governance issues at WeWork, saying he learned a "hard lesson "from the office sharing company's enhanced IPO efforts.
Bernstein analyst Chris Lane said in a research note Wednesday that Son & # 39; s rescue package by WeWork "will provide huge improvements to the return profile." He predicts that with better corporate governance and cost control, WeWork will "make the cash flow positive in 18 months."
Toyota ( TM ) meanwhile increased 0.9% in Tokyo after the company reported a strong profit. The automaker reported net profits of 1.27 trillion yen ($ 11.7 billion) for the first half, up 2.6% on the same period last year.
In Hong Kong, shares in Hong Kong Exchanges and Clearing ( HKXCF ) fell 0.5%.
The company, which operates the Hong Kong Stock Exchange, reported a net profit of Hong Kong $ 2.2 billion ($ 280 million) for the third quarter, slightly below market expectations. The stock exchange made a bold bid of $ 37 billion to buy the London Stock Exchange last month.
