Japan: Market ends lower

Japan share market finished lower on first trading session of the year, Monday, 04 January 2021, as risk aversion selloff triggered on renewed concerns about the spread of the coronavirus infections after Prime Minister Yoshihide Suga said he is considering a state of emergency for Tokyo and surrounding prefectures. However, market downside was capped after a survey showed Japan's factory activity stabilized for the first time in two years in December.

At closing bell, the 225-issue Nikkei Stock Average declined 185.79 points, or 0.68%, to 27,258.38. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 10.09 points, or 0.56%, to 1,794.59.

Shares of airlines, transport companies, real estate firms and retailers fell on fears that travel restrictions and shorter business hours will curb consumer spending and hurt the services sector.

Japan Manufacturing Sector Improves In December - Japan manufacturing sector improved in December with a manufacturing PMI score of 50.0, the latest survey from Jibun Bank showed on Monday. That's up from 49.0 in November and it now sits right on the line that separates expansion from contraction. Individually, output stabilized for the first time in 23 months and employment rose for the first time since February. New orders meanwhile, were reduced to the least marked extent of the past two years. According to anecdotal evidence, confidence remained downbeat due to the lingering impacts of the pandemic, although there was evidence that conditions were improving, notably in the automotive sector.

CURRENCY NEWS: The Japanese yen traded at 102.86 per dollar after strengthening from levels above 103.5 against the greenback last week.

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