Japan Nikkei falls on profit-taking selloff

Japan share market finished lower in subdued trade on Monday, 31 May 2021, as investors secured profits from the Nikkei's sharp rise late last week. Meanwhile, profit taking selloff fueled further amid downbeat retail sales figures and the government extension of state of emergency for three weeks until June 20 for more than 40% of Japan's population.

Market trading volume was lower from Friday as many investors opted for a wait-and-see attitude due to Memorial Day market closure in the United States and on caution ahead of major global economic data due out this week.

At closing bell, the 225-issue Nikkei Stock Average declined 289.33 points, or 0.99%, to 28,860.08. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 24.46 points, or 1.26%, to 1,922.98.

 

Trading volume turnover in the 1st section decreased to 1,020 million shares from 1,356 million shares on Friday. Trading value turnover decreased to 2,241.55 billion yen from 3,108.85 billion yen on Friday.

Total 32 sectors of 33 sectors sub-indexes on the Tokyo exchange were lower, with Real Estate, Banks, Machinery, Iron & Steel, Glass & Ceramics Products, Textiles & Apparels, Rubber Products, and Construction sectors being notable losers.

ECONOMIC NEWS: Japan Retail Sales Fall 4.5% On Month In April- Japan total value of retail sales dropped a seasonally adjusted 4.5% on month in April, the Ministry of Economy, Trade and Industry said on Monday, coming in at 12.200 trillion yen, following the 1.2% increase in March. On a yearly basis, retail sales climbed 12.0% after rising 5.2% in the previous month.

Japan Industrial Output Up 2.5% On Month In April- Japan industrial output climbed 2.5% on month in April, the Ministry of Economy, Trade and Industry said on Monday, following the downwardly revised 1.7% gain in March (originally 2.2%). On a yearly basis, industrial production jumped 15.4%, following the 3.4% increase in the previous month. Upon the release of the data, the METI maintained its assessment of industrial production, saying that it is picking up.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.07 after a recent spike to levels above 90.3. The Japanese yen traded at 109.72 per dollar, after weakening late last week to levels above 110 against the greenback.

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