Japan Stocks fall on stronger yen, COVID-19 resurgence concerns

Japan share market finished lower for second straight session on Wednesday, 28 October 2020, as risk sentiments dampened amid ongoing concerns about coronavirus cases surging in Europe and the United States and as the yen's rise against the U.S. dollar. However, market losses capped on brisk first-half earnings results from some companies.

At closing bell, the 225-issue Nikkei Stock Average declined 67.29 points, or 0.29%, to 23,418.51. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 4.98 points, or 0.31%, to 1,612.55.

Total 27 issues of 33 industry category of Topix index ended into red territory, with Mining, Iron & Steel, Insurance, Real Estate, Nonferrous Metals, Securities & Commodities Futures, and Banks issues being notable losers, while Precision Instruments, Retail Trade, Electric Appliances, and Information & Communication issues were notable gainers.

The soft start on the Tokyo bourse came after investors continued to sell US shares on lingering worries that the continued spread of the coronavirus in much of the United States and Europe may result in renewed lockdowns and damage to the still-weakened economy. However, the market trimmed some losses toward the end of the session on brisk first-half earnings results from some companies.

ANA Holdings fell 1.5% after it reported eye-watering losses for the fiscal first half and predicted a record annual loss of $4.87 billion as travel demand dried up due to the pandemic.

Bicycle parts maker Shimano jumped 17% after revising upward its profit forecast for 2020 on stronger demand as more people turn to bicycles for safe transportation amid the pandemic.

Glass product maker Hoya soared 6.7% after reporting slower declines in earnings for the first half of fiscal 2020 than market forecasts.

CURRENCY NEWS: The U.S dollar came under pressure in the lower 104 yen range as traders fled to the perceived safety of the yen amid resurging coronavirus infections in the United States and some European countries. The dollar stood at 104.53 yen compared with 104.41 yen in New York and 104.69 yen seen in Tokyo Tuesday.

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