Japan’s Mothers Index Plummets as Sosei Fuels Small-Cap Selloff
- Sosei, the biggest stock in the gauge, plunges after earnings
- Mothers drops 7.8%, resuming declines after Monday’s losses
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A measure tracking Japan’s start-up shares plunged by the most in three months, sending volatility soaring, as a selloff in small-caps sparked by disappointing earnings from its biggest member picked up speed.
The Tokyo Stock Exchange Mothers Index tumbled 7.8 percent, the most since Feb. 12, after earlier dropping as much as 9.8 percent. Sosei Group Corp., the biggest weighted company on Mothers, accounted for almost half of the gauge’s 89-point decline as it plummeted 20 percent, its steepest loss in five years. Short-term volatility on the Mothers index rose to its highest since mid-February while the value of shares traded spiked to near an 18-month peak.