Japan Market continues to lose ground

Japan share market declined on Thursday, 24 September 2020, mirroring the overnight sell-off in US markets on worry over a loss of momentum in global economic recovery and mounting concerns over a resurgence of coronavirus cases in Europe.

At closing bell, the 225-issue Nikkei Stock Average was down 258.67 points, or 1.11%, to 23,087.82. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 17.81 points, or 1.08%, to 1,626.44.

Total 32 issues of the 33 industry category of Topix index ended into red territory, with Mining, Iron & Steel, Nonferrous Metals, Transportation Equipment, Rubber Products, Real Estate, and Securities & Commodities Futures issues being notable losers.

Shares were pressured by sharp drops in the US, which also depressed TOkyo stocks. US indices ended lower on Wednesday, sliding in the last hour of trade, due to concern over the passage of a fresh stimulus bill, slowdown in business activity, and continued spike in COVID-19 cases.

Automaker Toyota, electronic device maker Nidec and other export-oriented issues succumbed to heavy selling, reflecting uncertainties over the world economy amid growing novel coronavirus cases in Europe and the stalemated virus stimulus talks in the United States.

Sumitomo Mitsui Trust dropped 2.8%, hit by concerns about reputational damages after Japanese company made errors in vote-counting of shareholders' meetings it administers.

On the other hand, clothing retailer Shimamura jumped 5.25%, thanks to its rosy preliminary sales data for September.

Among other major winners were food producer Meiji Holdings and parcel delivery firm Yamato Holdings.

CURRENCY: The Japanese yen traded at 105.34 per dollar after weakening from levels around 105 yesterday.

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