Japan Stocks fall on profit taking

Japan share market finished session lower on Monday, 17 May 2021, pressured by profit-taking, as worries over the slow pace of the domestic vaccination drive and the government enhances response to tackle the fourth wave of coronavirus infections with expanded and extended state of emergency in more areas. Disappointment over earnings and forecasts also weighed on some shares.

At closing bell, the 225-issue Nikkei Stock Average fell 259.64 points, or 0.92%, to 27,824.83. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 4.56 points, or 0.24%, to 1,878.86.

Total 19 sub-indexes of the 33 sector sub-indexes on the Tokyo exchange traded lower, with Nonferrous Metals, Marine Transportation, Services, Machinery, Information & Communication, Construction, and Iron & Steel sectors being notable losers, while Real Estate, Air Transportation, Transportation Equipment, and Rubber Products sectors were notable gainers.

 

Japan expanded a state of emergency to three more prefectures in a surprise move on Friday that reflects growing concern about the spread of the coronavirus. Japan's inoculation drive has been the slowest among advanced nations, with just 3 per cent of the population vaccinated.

Tech stocks ended lower, with Tokyo Electron ending down as much as 3.7 percent. SoftBank and Fast Retailing fell amid pandemic concerns.

Honda Motor shares declined after the carmaker forecast a 10.3 percent drop in net profit in the current business year through next March due to semiconductor shortages and higher raw material costs.

Fujikura shares dropped after the maker of cables and other non-ferrous metal products posted downbeat earnings results.

CURRENCY NEWS: The US dollar eased to around 109.30 yen in Tokyo trading on Monday. At 5 p.m., the dollar stood at 109.25 yen, down from 109.38 yen on Friday. The euro was at 132.58 yen, marginally up from 132.51 yen.

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