Japan Market falls on profit booking

Japan share market finished session lower on Monday, 07 December 2020, as profit-taking triggered amid growing investor concerns about an overheated market after the recent rally. A market sentiment was also dented by worries over recent record-high numbers of patients with severe COVID-19 symptoms in Japan. However, market losses capped on stimulus hopes after Prime Minister Yoshihide Suga statement that the government would decide on an economic stimulus package early this week to cushion the blow from the coronavirus pandemic.

At closing bell, the 225-issue Nikkei Stock Average fell 203.80 points, or 0.76%, to 26,547.44. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 15.19 points, or 0.86%, to 1,760.75.

The Tokyo market suffered downward pressure as profit-taking triggered amid growing investor concerns about an overheated market after the recent rally. In November, the Nikkei surged 15 percent but has met selling as the index neared the 27,000-mark, a level untouched since April 1991.

The health ministry said On Saturday that there were 520 patients considered severely ill with ventilators or in intensive care units, hitting a fresh record-high since the onset of the outbreak.

On the TSE's first section, decliners outnumbered gainers 1,714 to 395 with 70 issues unchanged. Furukawa Battery plummeted 20.2%, after the company denied production of batteries for drive motors for such vehicles. Kansai Electric tumbled 4.1% in response to Osaka District Court's ban on the restart of the No. 3 and No. 4 reactors at the power supplier's Oi nuclear plant in central Japan. Among other major losers were medical information provider M3 and clothing store chain Fast Retailing. On the other hand, Toppan Printing rose 6.8%, thanks to the company's announcement of a plan to buy back its own shares. Also upbeat were game maker Konami and Daiwa House.

ECONOMIC NEWS: Japan's Leading Index Surges In October-- Japan's leading index, which measures the future economic activity, climbed to 93.8 in October from 93.3 in September, preliminary data from the Cabinet Office showed on Monday. The latest reading was the highest since June last year, when it was 94.1. The coincident index increased to 89.7 in October from 84.8 in the previous month. This was the highest since February. Meanwhile, the lagging index fell to 89.9 in October from 91.7 in the prior month. A similar lower reading was recorded since April 2011

CURRENCY NEWS: The Japanese yen changed hands at 104.12 against the greenback, strengthening from an earlier level around 104.23.

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