Japan Stocks extend losses to 3rd day

Japan stock market finished lower for third straight session on Thursday, 01 July 2021, as risk sentiment was dampened by weaker than expected Japan Manufacturing PMI data and the recent upturn in new coronavirus cases in the Tokyo metropolitan area.

At closing bell, the 225-issue Nikkei Stock Average was down 84.49 points, or 0.29%, to 28,707.04. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 4.36 points, or 0.22%, to 1,939.21.

Trading volume turnover in the 1st section decreased to 833 million shares from 963 million shares in previous session. Trading value turnover decreased to 1,986.21 billion yen from 2,347.73 billion yen in previous session.

Total 21 of 33 sectors sub-indexes on the Tokyo exchange ended lower, with worst performers were Marine Transportation (down 3.8%), Information & Communication (down 1%), Metal Products (down 0.6%), Construction (down 0.5%), Electric Power & Gas (down 0.4%), Real Estate (down 0.4%), and Electric Appliances(down 0.4%) issues, while top gainers were Air Transportation (up 1.2%), Mining (up 0.6%), and Insurance (up 0.6%) issues.

Investors were concerned that rapid increase in COVID-19 infections fueled fears that the Japanese government may extend its current quasi-state of emergency in the capital and nearby areas which rapid increase in COVID-19 infections fueled fears that the Japanese government may extend its current quasi-state of emergency in the capital and nearby areas.

Tokyo has been experiencing a sharp rebound in coronavirus cases, logging 673 new infections Thursday, since the capital exited a state of emergency and shifted to quasi-emergency measures last month. Some in the government have been speculating on the possibility of another state of emergency for the area.

Shares of marine transportation declined the most among TSE sectoral peers on speculation that a rise in highly contagious coronavirus variants will adversely affect trade. Kawasaki Kisen dropped 4.6 percent to 3,810 yen, Nippon Yusen fell 3.7 percent to 5,420 yen, while Mitsui O.S.K. Lines slipped 3.9 percent to 5,130 yen.

Nitori Holdings rose 2.1 percent to 20,080 yen, after the furniture and interior chain store retailer posted a 14.1 percent rise in net profit in the quarter through May from a year earlier.

ECONOMIC NEWS: Japan Manufacturing PMI in June slipped to 52.4 on a seasonally adjusted basis from 53.0 in the previous month, final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) showed. Factory activity expanded at the slowest pace in four months in June, as momentum among manufacturers eased from the previous month when output took a big hit from global shortage of high-tech chips. The slower expansion of manufacturing activity comes as firms face pressure from higher input costs and a sharp recovery in other major global economies pushes up raw material prices.

CURRENCY NEWS: The dollar rose above 111.20 yen in Tokyo trading Thursday, as investor risk appetite increased on the back of strong U.S. economic data. At 5 p.m., the dollar stood at 111.27-27 yen, up from 110.54-58 yen at the same time Wednesday. The euro was at 131.83-84 yen, up from 131.55-55 yen.

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