Japan Nikkei falls for second day

Japan share market finished lower for second straight session on Thursday, 18 November 2021, as investors continued withdrawing profit off the table on tracking negative lead from Wall Street overnight and the yen's strength against the U.S. dollar. However, market losses capped after report about Japan's bigger-than-expected economic stimulus package to be unveiled the next day.

At closing bell, the 225-issue Nikkei Stock Average declined 89.67 points, or 0.3%, to 29,598.66. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 2.82 points, or 0.14%, to 2,035.52. Trading volume turnover on the main section stood at 1.22 billion shares worth 2.82 trillion yen.

Total 20 of 33 Topix industry groups ended down, with bottom performing issues were Mining (down 6.6%), Marine Transportation (down 4%), Oil & Coal Products (down 3.5%), Rubber Products (down 1.7%), and Iron & Steel (down 1%) issues, while top performing issues were Glass & Ceramics Products (up 0.9%), followed by Services (up 0.9%) issue.

Tokyo market commenced trading with a weak note amid persistent concerns about inflation and fears that global central banks may be forced to raise rates sooner rather than later. However, market trimmed losses after report about Japan's bigger-than-expected economic stimulus package to be unveiled the next day. The reports stated that the package will be 55.7 trillion yen ($488 billion) on a fiscal expenditure basis, boosted by a huge amount of cash handouts to cope with the COVID-19 pandemic.

Shares of energy firms declined as crude prices dropped to a one-month low after reports that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves. Oil firm Inpex plummeted 7.1% and Idemitsu Kosan lost 3.6%.

Shares of shippers declined, with Kawasaki Kisen plunging 7.2% and Nippon Yusen tumbling 4.4%.

Shares of Eisai dropped 7.4% after a European Medicines Agency panel voted against approval of Alzheimer's drug the Japanese drugmaker developed with Biogen Inc.

CURRENCY NEWS: Japanese yen appreciated to lower 114 range against greenback after weakening near the 115 yen line on Wednesday, as traders moved to secure recent gains. The Japanese yen changed hands at 114.10 per dollar compared with 114.04-14 yen in New York and 114.88-90 yen in Tokyo on Wednesday.

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