Japan Market ends flat

Japan stock market finished virtually flat in lacklustre trade on Thursday, 24 June 2021, on following the mixed cues overnight from Wall Street and lack of fresh trading catalysts, with losses in shares of aviation, land transportation, realty, and electric appliances companies were offset gains in mining, nonferrous metals, steelmakers, and technology stocks.

At closing bell, the 225-issue Nikkei Stock Average edged up 0.34 point, or 0.00%, to 28,875.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 2.04 points, or 0.1%, to 1,947.10.

Trading volume turnover in the 1st section decreased to 842 million shares from 944 million shares in previous session. Trading value turnover decreased to 1,947.54 billion yen from 2,285.62 billion yen in previous session.

Total 18 of 33 sectors sub-indexes on the Tokyo exchange ended lower, with top losers were Air Transportation (down 2.7%, Land Transportation (down 1.6%), Real Estate (down 1.4%), Warehousing & Harbor Transportation Services (down 0.6%), Rubber Products (down 0.5%), Electric Appliances (down 0.5%), and Services (down 0.4%) sectors, while top gainers included Mining (up 2.6%), Nonferrous Metals (down 0.9%), Iron & Steel (up 0.9%), Information & Communication (up 0.6%), Precision Instruments (up 0.6%), and Oil & Coal Products (down 0.5%) sectors.

Tokyo stocks barely moved around the previous day's closing levels as investors were wary, awaiting upcoming remarks from U.S. Federal Reserve officials to get clues about when an initial interest rate hike and stimulus tapering would take place.

Hospitality-related shares declined on profit-taking amid concerns about a spike in Covid-19 cases after the government eased social restrictions last week. West Japan Railway fell 2.7% while department store operators Isetan Mitsukoshi and Takashimaya lost 3.2% and 2.1%, respectively.

Shares of air and land transportation players were also down on fears of a potential rise in infections during the upcoming Tokyo Olympics, slated to begin July 23. Japan Airlines dropped 2.8% to 2,469 yen, while Central Japan Railway slipped 2.1% to 17,110 yen.

Energy-related shares rose after the U.S. Energy Information Administration said Wednesday gasoline consumption had increased amid greater travel demand. Inpex rose 2.7% to 865 yen, and Cosmo Energy Holdings climbed 0.5% to 2,494 yen.

Among individual stocks, Sumitomo Forestry shed 0.8% after the company announced a plan to sell new 16 million shares, which amount to 8.7% of its existing shares to raise up to 37.1 billion yen.

Mercari shares jumped after the technology startup forecast its first annual net profit. The flea market app operator ramped up its outlook to forecast a net annual profit of 5 billion yen, its first annual profit since its listing in June 2018.

CURRENCY NEWS: The Japanese yen traded at 110.89 per dollar, having weakened earlier this week from below 110 against the greenback.

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