Japan Nikkei falls on state of emergency in Tokyo

Japan stock market finished lower for third session in row on Friday, 09 July 2021, as risk aversion selloff continued amid concerns about economic slowdown after the state of emergency declaration for Tokyo to curb a wave of new Covid infections. However, market losses capped on the back of slightly weaker yen and as investors scooping up recently sold off shares.

At closing bell, the 225-issue Nikkei Stock Average was down 177.61 points, or 0.63%, to 27,940.42, its lowest close since May 17. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 7.94 points, or 0.41%, to 1,912.38.

Trading volume turnover in the 1st section increased to 1,425 million shares from 1,144 million shares in previous session. Trading value turnover increased to 3,323.99 billion yen from 2,608.98 billion yen in previous session.

Total 26 of 33 sectors sub-indexes on the Tokyo exchange ended lower, with worst performers were Machinery (down 1.3%), Rubber Products (down 1%), Marine Transportation (down 0.9%), Real Estate (down 0.9%), Warehousing & Harbor Transportation Services (down 0.8%), Metal Products (down 0.7%), and Chemicals (down 0.7%) issues, while top gainers included Mining (up 1.3%), Air Transportation (up 1%), and Land Transportation (up 0.6%) issues.

The Tokyo market got off to a weak start after the government issued a coronavirus state of emergency in Tokyo for the fourth time. Japanese Prime Minister Yoshihide Suga announced a state of emergency in Tokyo to prevent the resurgence of the future spread on Covid-19 cases across Japan ahead of the Olympics. The state of emergency will begin July 12 and run through Aug. 22, while the Games are scheduled from July 23 to Aug. 8.

Olympics organizers will ban spectators from the upcoming summer games in Tokyo, after a state of emergency in the city was declared by Japan on Thursday as the country sees rising Covid-19 cases.

Tokyo recorded 896 new Covid-19 cases on Thursday while on Wednesday, 920 people tested positive for the viral disease, the highest single-day spike since May 13 this year. The country has so far reported 810,000 cases and nearly 14,900 deaths.

CURRENCY NEWS: The U.S. dollar edged up to the lower 110 yen range, with the unit supported by demand from domestic importers. The Japanese yen traded at 110.07 per dollar, stronger than levels around 110.6 seen against the greenback yesterday.

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