Japan Nikkei extends losses to seventh session

Japan stock market finished lower for seventh consecutive session on Tuesday, 05 October 2021, on tracking negative lead from Wall Street overnight due to fears that higher oil prices might threaten inflation, corporate profits and reduce the pace of the global economic recovery. Meanwhile, as risk sentiment soured as new Japanese Prime Minister Fumio Kishida's proposal to raise tax on capital gains.

At closing bell, the 225-issue Nikkei Stock Average stumbled 622.77 points, or 2.19%, to 27,822.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange retreated 26.17 points, or 1.33%, to 1,947.75.

Trading volume turnover on the main section stood at 1.51 billion shares worth 3.62 trillion yen, as compared yesterday's volume turnover of 1.32 billion shares worth 3.26 trillion yen.

Total 26 of 33 industry groups ended lower along with the Topix, with bottom performing issues were Precision Instruments (down 2.9%), Machinery (down 2.6%), Information & Communication (down 2.2%), Pharmaceutical (down 2%), and Electric Appliances (down 1.9%), while Mining (up 5.4%) best performing issues, followed by Oil & Coal Products (up 2.4%) sector.

Shares of technology companies tumbled, with Screen Holdings, Advantest and Tokyo Electron losing 1-2%. SoftBank Group fell 3.8% on concerns about falling values of its investment in tech firms, in particular Alibaba.

Fast Retailing shares plummeted 6.9% after the operator of Uniqlo casual clothing chain reported a 19% fall in its existing store sales in September.

Shares of energy related companies benefited from rising crude oil prices, with Idemitsu Kosan climbing 3.7% and Inpex gaining 5.6%.

ECONOMIC NEWS:- Japan Services Sector Stays In Contraction In September- Japan services sector continued to stay in contraction in September, with a services PMI score of 47.8, the latest survey from Jibun Bank showed on Tuesday. That's up from 42.9 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. New business declined at a softer pace in the latest survey period. Also, the composite PMI improved to 47.9 from 45.5 in the previous month.

CURRENCY NEWS: The dollar was stood around lower 111 yen on Tuesday. The dollar stood at 111.09-09 yen, down from 111.16-20 yen on Monday. The euro was at 128.83-84 yen, down from 129.05-05 yen.

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