Japan Market tumbles as GDP shows record quarterly fall

Japan share market finished session lower on Monday, 17 August 2020, amid concerns over the prospect for the Japanese economy after official data showed a record economic contraction in the April-June period. Investors were also discouraged by worsening US-China tensions after the two countries postponed weekend trade negotiations.

At closing bell, the 225-issue Nikkei Stock Average declined 192.61 points, or 0.83%, to 23,096.75. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 13.56 points, or 0.84%, at 1,609.82.

Total 30 issues of the 33 industry category of Topix index dived into negative territory, with Precision Instruments, Services, Land Transportation, Pharmaceutical, Foods, and Chemicals issues being notable losers, while Marine Transportation and Air Transportation issues were notable gainers.

The underperformers among the top 30 Topix names were job placement company Recruit Holdings, down 3.17%, followed by drugs maker Daiichi Sankyo, losing 2.21%. The Topix 30 stocks that gained the most were industrial conglomerate Hitachi, up 1.15%, followed by Honda carmaker Motor Co, gaining 0.7%.

ECONOMIC NEWS: Japan GDP Tumbles 27.8% On Year In Q2--Japan's gross domestic product fell an annualized 27.8% on year in the second quarter of 2020, the Cabinet Office said on Monday's preliminary report, following the 2.2% drop in the previous three months. On a seasonally adjusted quarterly basis, GDP sank 7.8%, following the 0.6% slide in the three months prior. Capital expenditure was down 1.5% on quarter, following the 1.7% increase in Q1.

CURRENCY: The dollar stood at 106.55 yen in Asian afternoon trade, down from 106.62 yen seen in New York on Friday.

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