Japan Market extends losses

Japan share market finished lower for second straight session on Monday, 07 September 2020, as risk aversion selloff continued on inheriting a negative lead from Wall Street late last week and losses in Nikkei heavyweight SoftBank Group Corp. However, market losses capped as many market players adopted a wait-and-see stance with the U.S. market closed on Monday for Labor Day.

At closing bell, the 225-issue Nikkei Stock Average declined 115.48 points, or 0.5%, to 23,089.95. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.86 points, or 0.42%, to 1,609.74.

The Tokyo market opened lower, on the back of falls in all three major U.S. stock market yardsticks Friday that reflected tech sell-offs and waning expectations for progress in stalled talks over a new coronavirus relief package by the U.S. government. The market was also pushed down by Nikkei heavyweight SoftBank Group Corp., as the investment and technology conglomerate lost more than 6% after reports of the company's massive purchase of derivatives tied to U.S. individual tech stocks.

Chipmaking gear manufacturer Tokyo Electron and other semiconductor-related issues met with selling, following falls in their U.S. industry peers on Friday. SoftBank Group plummeted 7.15%. Among other major losers were beverage-maker Asahi Group Holdings and automaker Toyota Motor Corp. On the other hand, Ushio Inc gained 5.35%, as investors cheered the lighting equipment-maker's announcement that it has confirmed the inactivation efficacy of its Care222 ultraviolet ray product against the novel coronavirus. Advertising giant Dentsu Group Inc. and job information provider Recruit Holdings Co. also went up.

CURRENCY: The U.S. dollar was firm in the lower 106 yen zone as better-than-expected U.S. employment data for August eased risk aversion. The dollar fetched 106.27-28 yen compared with 106.19-29 yen in New York and 106.16-18 yen in Tokyo at 5 p.m. Friday.

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