Japan Stocks close lower as PM Abe resigns

Japan share market finished session lower on Friday, 28 August 2020, as investor sentiment was dented by reports that Prime Minister Shinzo Abe will step down due to health reasons. At closing bell, the 225-issue Nikkei Stock Average declined 326.21 points, or 1.41%, to 22,882.65. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 11.02 points, or 0.68%, to 1,604.87.

Total 20 issues of the 33 industry category of Topix index ended into red territory, with Information & Communication, Electric Appliances, Retail Trade, Warehousing & Harbor Transportation Services, Pharmaceutical, and Services issues being notable losers, while Insurance, Banks, Real Estate, and Land Transportation issues were notable gainers.

Tokyo stocks commenced trading with firm footing, as investors initially welcomed longer-term easing from by U.S. Federal Reserve to help the economy. But stocks later dived, as investors quickly turned risk averse on the resignation reports that sparked political uncertainty in the world's third-largest economy.

Electric appliance issues fell, with Sony shedding 3.3% to 8,280 yen and Fujitsu sagging 3% to 13,710 yen.

Among financial issues, life insurer Dai-ichi Life Holdings surged 4.4% to 1,585.50 yen and lender Mitsubishi UFJ Financial Group advanced 2% to 440.60 yen.

ECONOMIC NEWS: Japan Consumer Prices Increase 0.3% On Year In August- Japanese consumer price index increased 0.3% year-on-year in August, slower than 0.6% rise July, data from the Ministry of Internal Affairs showed on Friday. In June, inflation was 0.3%. Core CPI fell 0.3% in August, after a 0.4% rise in the previous month. On a monthly basis, core prices fell 0.6% in August, after a 0.3% rise in the prior month. Excluding fresh food and energy, consumer prices fell 0.7% monthly, after a 0.3% increase in July. On a seasonally adjusted basis, consumer prices fell 0.4% in August, reversing a 0.3% rise in the preceding month.

CURRENCY: The Japanese yen changed hands at 105.57 per dollar following the report that Abe plans to step down to deal with a health problem, after seeing an earlier low of 106.94 against the greenback.

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