Japan: Market extends losses with eyes on Japan virus policy

Japan share market finished slid firmly into negative territory on Thursday, 14 May 2020, as sentiment soured on tracking an overnight slide on Wall Street, after downbeat economic outlook by the Federal Reserve Chairman Jerome Powell's. Meanwhile, selloff fuelled further on fears of a second coronavirus wave as Japan's expected partial lifting of a state of emergency imposed over the coronavirus outbreak. At closing bell, the 225-issue Nikkei Stock Average stumbled 352.27 points, or 1.74%, to 19,914.78. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 28.14 points, or 1.91%, at 1,446.55.

The Tokyo market opened substantially lower in the wake of back-to-back plunges in the U.S. market amid growing concerns about a prolonged pandemic-caused recession after Federal Reserve Chairman Jerome Powell's remarks in a speech suggesting the possibility of the U.S. economy recovering from the coronavirus crisis more slowly than expected. Powell's vowed to use the central bank's power as needed, but also suggested that might not be enough to avoid deep economic damage without more fiscal support.

Investors are also watching the Japanese government's expected decision to lift a state of emergency in parts of the country.

The soured U.S. economic prospect dampened automaker Toyota, electronics firm Hitachi and other export-oriented stocks. A drop in crude oil prices tainted oil names such as JXTG and Idemitsu.

Sony Corp shares shed after saying it expects operating profit to drop at least 30% this financial year to its lowest in four years as the coronavirus outbreak damages demand.

Takeda Pharmaceutical Co shares jumped after the company booked a surprise operating profit and forecast that income would triple this financial year.

Powered by Capital Market - Live News