Japan Nikkei falls on negative offshore lead

Japan stock market finished lower for the first time in three consecutive sessions on Wednesday, 14 July 2021, as investors opted to book profit on tracking the broadly negative cues from Wall Street overnight after hotter-than-expected U.S. inflation report. Meanwhile, selloff was also flared amid concerns about global economy after the accelerating infection rates of the highly contagious delta variant of the coronavirus in Olympic city Tokyo and in several parts of the world.

At closing bell, the 225-issue Nikkei Stock Average declined 109.75 points, or 0.38%, to 28,608.49. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 4.48 points, or 0.23%, to 1,963.16.

Trading volume turnover in the 1st section increased to 981 million shares from 957 million shares in previous session. Trading value turnover increased to 2,242.97 billion yen from 2,180.12 billion yen in previous session.

Total 19 of 33 sectors sub-indexes on the Tokyo exchange ended lower, with five bottom performing were Marine Transportation (down 3.7%), Rubber Products (down 3.6%), Air Transportation (down 2.8%), Iron & Steel (down 2.1%), and Textiles & Apparels (down 1.5%) issues, while top five performing issues included Construction (up 1.3%), Electric Power & Gas (up 0.8%), Other Financial Business (up 0.6%), Pharmaceutical (up 0.5%), and Information & Communication (up 0.5%) issues.

Shares of component suppliers for Boeing Co. fell after the company announcement to temporarily reduction of production due to additional rework required on its undelivered 787 aircraft. Mitsubishi Heavy Industries declined 2.2% to 3,222 yen, and IHI slid 1.4% to 2,581 yen.

Shares of Toho climbed 11.1% to 5,060 yen, after the cinema operator posted operating profit for the March-May business period that nearly quadrupled from a year earlier.

ECONOMIC NEWS: Japan Industrial Production Down 6.5% On Month In May- Japan's industrial production fell a seasonally adjusted 6.5% month-on-month in May, the Ministry of Economy, Trade and Industry said on Wednesday. In the initial estimate, output decreased 5.9%. Shipment declined 5.5% monthly in May and inventories fell 1.1%. Meanwhile, inventory ration increased by 1.3%. On a yearly basis, industrial production grew 21.1% in May. In the initial estimate, output rose 22.0%.

CURRENCY NEWS: The U.S. dollar remained steady in the mid-110 yen range, after the unit advanced overnight on speculation that a rise in U.S. Treasury yields would widen the interest rate gap between the United States and Japan. The Japanese yen traded at 110.47 per dollar, weaker than levels around 110 against the greenback seen earlier in the week.

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