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Japan Nikkei extends losses ahead of LDP leader election

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Capital Market
Last Updated : Sep 28 2021 | 6:04 PM IST
Japan stock market finished lower for second straight session on Tuesday, 28 September 2021, as investors continued withdrawing recent gains off the table on caution ahead of the four-way election to pick the president of the ruling Liberal Democratic Party.

At closing bell, the 225-issue Nikkei Stock Average declined 56.10 points, or 0.19%, to 30,183.96. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 5.97 points, or 0.29%, to 2,081.77. Trading volume turnover on the main section stood at 1.51 billion shares worth 3.81 trillion yen.

Total 16 of 33 industry groups advanced on the Topix, with top gaining issues were Mining (up 3.9%), Textiles & Apparels (up 1.4%), Banks (up 1.3%), Nonferrous Metals (up 1.2%), Oil & Coal Products (up 1.1%), and Rubber Products (up 1%), while bottom performing issues included Marine Transportation (down 8.6%), Precision Instruments (down 1.4%), Air Transportation (down 1.3%), and Electric Power & Gas (down 1%).

Tokyo stocks remained in negative territory throughout the day as investors moved to lock in recent large gains a day before the ruling Liberal Democratic Party (LDP) leadership election, which would be held on Wednesday to elect Japan's new prime minister. The new LDP leader, who will likely be chosen in a runoff vote, will also become the next prime minister as the party controls the House of Representatives, the more powerful chamber of parliament.

Shares of marine transport companies tumbled, with Nippon Yusen erasing 8.2%, Mitsui O.S.K. Lines sliding 7%, and Kawasaki Kisen sinking 14.5%.

Shares of leisure-related companies gained after Prime Minister Yoshihide Suga statement today that the government will end the coronavirus state of emergency in Tokyo and 18 prefectures this week. Daiichikosho, the operator of major "Big Echo" karaoke rooms, climbed 2.5% and Koshidaka Holdings gained 0.2%. Ticket sales firm Pia jumped 7.2% on the government's plan to gradually relax a rule limiting the size of crowds at major events.

CURRENCY NEWS: The U.S. dollar depreciated in the lower 111 yen range, as risk appetite increased after rising overnight on advances in U.S. Treasury yields that raised hopes for a wider interest rate gap between Japan and the United States. The dollar fetched 111.24-25 yen compared with 110.96-111.06 yen in New York and 110.77-78 yen in Tokyo on Monday.

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First Published: Sep 28 2021 | 4:41 PM IST

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