Japan Stocks fall on profit-taking

Japan share market finished session lower on Thursday, 15 October 2020, as investors sentiments were dry after hopes faded for a new round of US fiscal stimulus, a return of coronavirus lockdowns in Europe and worries about Sino-US tensions.

At closing bell, the 225-issue Nikkei Stock Average declined 119.50 points, or 0.51%, to 23,507.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 12.11 points, or 0.74%, to 1,631.79.

Total 30 issues of the 33 industry category of Topix index ended into red territory, with Pharmaceutical, Pulp & Paper, Foods, Fishery, Agriculture & Forestry, Retail Trade, Services, and Precision Instruments issues being notable losers.

 

Trading got off to a negative start with losses extending throughout the day as concerns grew about the health of the virus-hit U.S. economy after US Treasury Secretary Steve Mnuchin said reaching a compromise with the Democrats on a fiscal stimulus was unlikely before the Nov 3 election.

Sentiment also worsened after sources told Reuters the US State Department has submitted a proposal for President Donald Trump administration to add China's Ant Group to a trade blacklist, which could complicate its highly-anticipated initial public offering.

Britain has introduced a new lockdown system, France imposed curfews and other European nations were closing schools to stop a second wave of the novel coronavirus.

Retailers were among the worst-performing sectors, after posting disappointing earnings for the six months to August the previous day. Among these, Saizeriya, operator of a low-priced Italian restaurant chain, tumbled 6.7%, after reporting a hefty net loss for the year through August, while noodle restaurant chain Ringer Hut slumped 6.5%, after posting a large net loss. Similarly, shoes retailer ABC-Mart dropped 3.6%, after posting a net profit that was 68% less than a year earlier.

CURRENCY NEWS: The Japanese yen traded at 105.21 per dollar, having strengthened from levels above 105.3 against the greenback yesterday

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