Japan Market falls on profit booking

Japan stock market finished session down on Thursday, 09 September 2021, breaking the rally for eight consecutive days, as investors opted to secure recent profit locked in gains amid concerns about economic growth pace after the government said it would extend its COVID-19 state of emergency in Tokyo and 18 other prefectures until the end of this month. Sentiment was also weighed on by concerns about the U.S. economic outlook after the Federal Reserve's Beige Book on Wednesday showed U.S. economic growth slowed to a moderate pace from early July through August due to the spread of the Delta variant of COVID-19.

At closing bell, the 225-issue Nikkei Stock Average dropped 173.02 points, or 0.57%, to 30,008.19. The broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 14.68 points, or 0.71%, to 2,064.93.

Trading volume on the main section decreased to 1,260 million shares worth 3.07 billion yen from yesterday's 1,320 million shares worth 3.67 billion yen.

Total 29 of 33 industry groups declined on the Topix, with top performing sectors were Air Transportation (down 1.7%), Rubber Products (down 1.6%), Machinery (down 1.5%), Pharmaceutical (down 1.4%), Other Financial Business (down 1.4%), Transportation Equipment (down 1.3%), and Warehousing & Harbor Transportation Services (down 1.3%) sectors, while Electric Power & Gas (up 3.2%) was worst performer, followed by Foods (up 0.8%) sector.

Shares of aviation and department store operators declined in reports that the Japanese government is planning to extend the COVID-19 state of emergency in Tokyo and other metropolitan areas. ANA Holdings shed 1.8% and J. Front Retailing declined 0.9%.

Shares of electric power and gas companies gained on hopes new government will have flexible stance on the restart of existing nuclear plants. Tokyo Electric Power Company Holdings soared 11% and Kansai Electric Power jumped 5.4%.

Shares of SoftBank Group declined 1.9% on profit taking after surging the precious day on news of $7 billion share-swap deal with Deutsche Telekom.

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