TOKYO: Japanese shares on Wednesday dropped to their lowest in more than a week as global risk sentiment soured after an extended selloff in US heavyweight technology companies.

The benchmark Nikkei share average closed 1.04% lower at 23,032.54, while the broader Topix lost 0.96% to 1,605.40.

Both indexes hit their lowest level since Aug. 28.

Optimism that the Bank of Japan would buy exchange-traded funds to support the market in addition to a higher e-mini futures for the S&P 500 helped curb early declines.

Shares of SoftBank Group Corp dropped 2.87% to post their fifth consecutive session of losses.

The conglomerate's stock has been falling since sources told Reuters and other media late last week that it had built up massive stakes in US tech firms, in addition to purchasing call options.

Other technology companies including Sony Corp and Tokyo Electron dropped around 2% each.

Hopes of a quick economic recovery were dampened after AstraZeneca Plc said it has paused a late-stage study of one of the leading coronavirus vaccine candidates over safety concern.

Energy-related stocks tumbled as oil prices slumped after Saudi Arabia cut its October selling prices and Covid-19 cases rebounded in several countries.