Japan Stocks fall on worries over economy

Stocks in Japan market declined on Thursday, 16 April 2020, following the negative cues from Wall Street overnight as disappointing corporate earnings results and dismal economic data highlighted the devastating economic impact of the COVID-19 pandemic. However, market losses capped, as expectations emerged that further purchases of exchange-traded funds may be made by the Bank of Japan. Around late afternoon, the 225-issue Nikkei Stock Average dropped 261.31 points, or 1.34%, to 19,288.78. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 13.29 points, or 0.93%, at 1,420.78.

More than two third issues of 33 industry category of Topix index were in negative territory, with Nonferrous Metals, Marine Transportation, Transportation Equipment, Banks, Oil & Coal Products, and Air Transportation issues being notable losers, while Warehousing & Harbor Transportation Services, Information & Communication, and Electric Power & Gas issues were notable gainers.

The selloff in the Tokyo market came on following sharp pullback in Wall Street overnight after the latest earnings and economic news reminded investors of the devastating economic impact of the coronavirus pandemic. Wednesday's economic lowlight was the Commerce Department report showing U.S. retail sales plummeted 8.7% in March after falling by a revised 0.4% in February, as the engine of the U.S. economy gets locked away amid widespread stay-at-home orders to slow the spread of the virus. A separate report from the New York Federal Reserve showed New York manufacturing activity contracted at the fastest rate on record in the month of April. The New York Fed said its general business conditions index plummeted to a negative 78.2 in April from a negative 21.5 in March, with a negative reading indicating a contraction in regional manufacturing activity.

CURRENCY: The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.91 after seeing levels below 99.0 yesterday. The Japanese yen traded at 107.99 per dollar, as compared to levels above 108 seen earlier in the week.

Powered by Capital Market - Live News