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Japan Stocks end mostly lower amid continued coronavirus concern

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Capital Market
Last Updated : May 07 2020 | 12:05 PM IST
Japan share market closed edged lower on the first day after the Golden Week string of national holidays, Thursday, 07 May 2020, as sentiment was dented by tracking losses made on Wall Street overnight after weak economic data reignited concern about the economic impact of the coronavirus pandemic. At closing bell, the 225-issue Nikkei Stock Average edged up 6.08 points, or 0.03%, to 19,625.38. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 9.01 points, or 0.63%, at 1,422.25. Markets were closed from Saturday to Wednesday for the Golden Week national holidays.

Total 21 issues of 33 industry category of Topix index were in negative territory, with Air Transportation, Insurance, Land Transportation, Iron & Steel, Nonferrous Metals, and Oil & Coal Products issues being notable losers, while Other Products, Electric Appliances, Metal Products, Construction, and Pharmaceutical issues were notable gainers.

Tokyo market commenced trading with back foot as sentiment was dented tracking losses made on Wall Street overnight after payrolls processor ADP said private payrolls decreased by 20.2 million in the United States in April as the coronavirus forced many companies to shutter during the nationwide shutdown.

Market players were also worried about a slowdown in business activity in Japan after Prime Minister Shinzo Abe on Monday extended the nationwide state of emergency until the end of May in a bid to curb new coronavirus infections. But earlier losses were eased, underpinned by solid technology issues that tracked rises in their U.S. counterparts on Wednesday.

Air transportation issues were weak as travel bans and restrictions imposed by many governments are still in place due to the spread of the virus. ANA Holdings and Japan Airlines were down inbetween 5% to 7%.

CURRENCY: The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded 100.154 after crossing the 100 mark earlier. The Japanese yen traded at 106.15 per dollar after strengthening from levels above 106.5 seen earlier this week.

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First Published: May 07 2020 | 11:43 AM IST

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