Japan Market falls on weak offshore lead

Japan share market finished session lower on Wednesday, 30 September 2020, as profit booking by investors on tracking a negative lead from Wall Street overnight along with concerns over rising coronavirus infections and the uncertainty surrounding the U.S. election result. However, market losses capped on the back of better than expected retail sales and industrial production data for August.

At closing bell, the 225-issue Nikkei Stock Average was down 353.98 points, or 1.5%, to 23,185.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 32.61 points, or 1.97%, to 1,625.49.

Total 31 issues of the 33 industry category of Topix index ended into red territory, with Banks, Securities & Commodities Futures, Air Transportation, Glass & Ceramics Products, Warehousing & Harbor Transportation Services, Insurance, and Marine Transportation issues being notable losers.

Shares of Japanese telecommunications firms were mostly lower following a recent shakeup in the sector, with Nippon Telegraph and Telephone Corporation (NTT) set to take over its telecommunications unit, NTT Docomo. Shares of NTT fell 3.6% on Wednesday while NTT Docomo surged 20.9%. Meanwhile, shares of NTT Docomo's mobile peers were lower SoftBank Corp dipped 1.1% while KDDI shed 0.3%. The move by NTT comes as new Japanese Prime Minister Yoshihide Suga calls on wireless carriers to reduce prices, with the hope that the savings generated will stimulate consumer spending elsewhere in the economy.

ECONOMIC NEWS: Japan Industrial Production Adds 1.7% On Month In August- Japan industrial production climbed a seasonally adjusted 1.7% on month in August, the ministry of Economy, Trade and Industry said on Wednesday, following the 8.7% gain in July. On a yearly basis, industrial production dropped 13.3% following the 15.5% decline in the previous month. Upon the release of the data, the METI upgraded its assessment on industrial production, saying now that it is picking up.

Japan Retail Sales Rise 4.6% On Month In August Japan retail sales added 4.6% on month in August coming in at 12.419 trillion yen, the ministry of Economy, Trade and Industry said on Wednesday, following the downwardly revised 3.4% drop in July (originally -3.3%). On a yearly basis, retail sales fell 1.9% after slipping a downwardly revised 2.9% in the previous month (originally -28%).

CURRENCY NEWS: The Japanese yen traded at 105.63 per dollar, having seen an earlier low of 105.80 against the greenback.

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