Japan Market falls on yen's appreciation

Japan share market closed lower on Tuesday, 16 July 2019, weighed down by selling of wide-ranging issues amid the yen's appreciation against the U.S. dollar. Market losses were, however, limited on reports of apparent buying of exchange-traded funds by the Bank of Japan. Most of subsectors of the Topix's index dropped, with Oil and coal product, electric power and gas, and precision instrument-linked issues being notable losers. At closing bell, the 225-issue Nikkei Stock Average declined 0.7%, or 150.65 points, to 21,535.25, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 0.0.5%, or 7.57 points, at 1,568.74. The Japan market was closed Monday for Marine Day.

Yamato Holdings fell 1.4% in response to a news report that the parcel delivery firm is expected to post an operating loss for April-June. Among other major losers were technology investor SoftBank Group and clothing store chain Fast Retailing.

On the other hand, automakers outperformed after reports that the Chinese government is set to shift its automotive strategy to rely more on hybrid vehicles. The move is part of the country's efforts to clean up the environment, instead of centring solely on electric vehicles, a development likely to work in favour of Japanese automakers such as Toyota Motor and Honda Motor. Toyota rose 1.3%, while Honda shed 0.4%. Also on the positive side were cosmetics maker Shiseido and Pan Pacific International Holdings, which runs Don Quijote discount stores.

CURRENCY NEWS: Japanese yen, often seen as a safe-haven currency, appreciated against greenback on Tuesday. The Japanese yen traded at 107.90 against the dollar after touching levels above 108.0 in the previous session.

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