Japan Stocks fall on COVID-19 resurgences concerns

Japan share market finished session lower on Tuesday, 27 October 2020, following an overnight Wall Street decline, amid renewed concerns over the pace of the global economic recovery from the pandemic after spike in coronavirus infections in both the U.S. and Europe.

At closing bell, the 225-issue Nikkei Stock Average declined 8.54 points, or 0.04%, to 23,485.80. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 1.45 points, or 0.09%, to 1,617.53.

Total 24 issues of 33 industry category of Topix index ended into red territory, with Air Transportation, Mining, Rubber Products, Marine Transportation, Iron & Steel, Real Estate, and Construction issues being notable gainers, while Precision Instruments, Information & Communication, Fishery, Agriculture & Forestry, and Services issues were notable gainers.

The Japanese market suffered by sell orders with investors discouraged by sharp falls in US shares, as coronavirus counts are spiking in much of the United States and Europe, raising concerns about more damage to the still-weakened economy. The data compiled by Johns Hopkins University showed daily coronavirus cases in the U.S. have risen by an average of 68,767 over the past seven days, a record. On Sunday alone, more than 60,000 cases were reported. The country saw more than 83,000 new infections on both Friday and Saturday after outbreaks in Sun Belt states, surpassing a previous record of roughly 77,300 cases set in July. In Europe, Spain's government declared a national state of emergency on Sunday that includes an overnight curfew, while Italy ordered restaurants and bars to close each day by 6 p.m. and shut down gyms, pools and movie theaters.

Meanwhile, diminishing prospect over the White House and Republicans striking a stimulus deal with Democrats before the election also fuelled selloff. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke several times last week on potential deal to send cash to most Americans, restart supplemental benefits for laid-off workers and provide aid to schools, among other things. But deep partisan difference remains on Capitol Hill, and time is running out for anything to happen before Election Day on Nov. 3. Any compromise reached between House Democrats and the White House would also likely face stiff resistance from Republicans in control of the Senate.

ANA Holdings dropped 3.2% ahead of its second quarter earnings report and details on restructuring plans. After the closing bell, ANA said it forecasts a record annual loss of 510 billion yen for the current financial year to March.

Nissan Motor was down 1.6% despite reports it will boost production in China by 30% next year.

CURRENCY NEWS: The dollar fetched 104.69 yen in Asian trade, against 104.84 yen in New York late Monday.

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