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Japan Nikkei tumbles on Covid variant worries

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Capital Market
Last Updated : Nov 26 2021 | 3:05 PM IST
Japan share market finished session at one-month low on Friday, 26 November 2021, as risk aversion selloff triggered across the board, amid renewed fears about the global economic outlook after the detection of a new and possibly vaccine-resistant coronavirus variant in South Africa. Meanwhile, stronger yen against the dollar also weighed on the market.

At closing bell, the 225-issue Nikkei Stock Average stumbled 747.66 points, or 2.53%, to 28,751.62. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 40.71 points, or 2.01%, to 1,984.98.

Shares of air and land transportation companies suffered heavy losses on worries that the South African variant may reduce people's ability to travel, with Central Japan Railway, Western Japan Railway and Keisei Electric Railway losing 3-6%. ANA Holdings plummeted 4.5% after raising funds through a sale of convertible bonds. Japan Airlines tumbled 6.5%.

Export related shares were lower as the yen strengthened against the U.S. dollar. Electronic manufacturers Canon fell 2% and Panasonic slumped 2.8%. Automakers Mazda Motor dropped 2.7% while Nissan Motor sagged 1.6% after reports that it will boost investment in electronic vehicles to achieve a target of EVs and hybrids making up 50% of its global sales by fiscal 2030..

Shares of SoftBank Group plummeted 5.2% following reports that Chinese regulators have asked Didi, which the Japanese conglomerate holds a sizable stake in, to delist from the U.S.

Mizuho Financial Group shares declined after reports that its CEO will step down later in the day following a series of system glitches over which the Financial Services Agency will reportedly issue an administrative business improvement order.

CURRENCY NEWS: Japanese yen appreciated to lower 114 range against greenback on Friday, as demand for safe-haven currency resumed on worries over the new COVID-19 strain discovered in South Africa. The yen last traded at 114.07 per dollar, as compared with levels above 115 seen earlier against the greenback.

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First Published: Nov 26 2021 | 2:23 PM IST

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