Japan Market tumbles on COVID-19 concerns

Japan stock market finished session steep lower on Monday, 16 August 2021, with the Nikkei benchmark falling for the third straight session, due to yen appreciation to the lower 109 yen range against the U.S. dollar. Meanwhile, selloff pressure intensified on concern over the economic impact of record coronavirus cases in Japan

At closing bell, the 225-issue Nikkei Stock Average stumbled 453.96 points, or 1.62%, to 27,523.19. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 31.41 points, or 1.61%, to 1,924.98.

Trading volume turnover in the 1st section decreased to 1036 million shares from 1044 million shares in previous session. Trading value turnover decreased to 2323.02 billion yen from 2384.42 billion yen in previous session.

Total 31 of 33 sectors sub-indexes on the Tokyo exchange ended down, with bottom performing sectors were Pulp & Paper (down 2.8%), Warehousing & Harbor Transportation Services (down 2.7%), Services (down 2.6%), Other Financial Business (down 2.6%), Nonferrous Metals (down 2.3%), Oil & Coal Products (down 2.2%), and Mining (down 2.2%), while top performing sectors included Marine Transportation (up 1.9%) and Air Transportation (up 0.6%).

Japan has seen nationwide daily cases top 20,000 in recent days, driven by the highly infectious Delta variant. Japan logged a total of 17,837 infections on Sunday. Pressure has been growing on the central government to expand the state of emergency that currently covers Tokyo, Osaka and four other prefectures amid an increasing strain on the medical system.

Exporters were hit after the yen strengthened against the U.S. dollar, with automaker Nissan Motor declining 3.8% to 593.5 yen. Electronics manufacturer Panasonic dropped 2.4% to 1,325.5 yen, and Sharp slipped 1.6% to 1,520 yen.

Fujifilm Holdings surged 6.8% to 8,517 yen, after revising upward its net profit estimate for the business year through March by 23.1%, compared with the previous projection in May.

Citizen Watch shares jumped 9.8% to 481 yen, after the watch manufacturer revised upward its earnings estimate for the business year through March, raising its operating profit outlook by 38% compared with the previous forecast in May.

ECONOMIC NEWS: Japan's gross domestic product grew 1.3% on year in the second quarter of 2021, the Cabinet Office said in Monday's preliminary report, shifting from a downwardly revised 0.9% contraction in Q1. On a seasonally adjusted quarterly basis, gross domestic product rose 0.3%. Capital expenditure gained 1.7% on quarter. External demand was down 0.3% on quarter. Private consumption climbed 0.8% on quarter. The rebound was supported by an upturn in household consumption, business investment, and government spending, amid a recovery in the economy from the coronavirus disruption following an acceleration in virus vaccinations.

CURRENCY NEWS: The U.S. dollar weakened to the lower 109 yen range. The dollar fetched 109.40-42 yen compared with 109.56-66 yen in New York and 110.29-30 yen in Tokyo on Friday.

Powered by Capital Market - Live News