Japan Stocks extend losses on virus emergency expansion woes

Japan stocks were mostly down after on Tuesday, 17 August 2021, with the Nikkei benchmark extending its losing streak to a fourth session in row, as sentiment was hurt by deepening concerns over an economic recovery amid imminent expansion of Japan's coronavirus state of emergency. Meanwhile, selloff pressure intensified due to yen appreciation to the lower 109 yen range against the U.S. dollar.

At closing bell, the 225-issue Nikkei Stock Average fell 98.72 points, or 0.36%, to 27,424.47. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 9.35 points, or 0.49%, to 1,915.63.

Trading volume turnover in the 1st section decreased to 954 million shares from 1036 million shares in previous session. Trading value turnover decreased to 2068.48 billion yen from 2323.02 billion yen in previous session.

Total 27 of 33 sectors sub-indexes on the Tokyo exchange ended down, with bottom performing sectors were Air Transportation (down 2.3%), Iron & Steel (down 2.3%), Oil & Coal Products (down 1.6%), Other Financial Business (down 1.4%), Nonferrous Metals (down 1.2%), Mining (down 1.1%), and Real Estate (down 1.1%), while top performing sectors included Marine Transportation (up 1.6%), Warehousing & Harbor Transportation Services (down 1.6%), and Pharmaceutical (up 0.9%).

Japan has seen nationwide daily cases top 20,000 in recent days, driven by the highly infectious Delta variant. Japan logged a total of 17,837 infections on Sunday. Pressure has been growing on the central government to expand the state of emergency that currently covers Tokyo, Osaka and four other prefectures amid an increasing strain on the medical system.

ECONOMIC NEWS: Japan Tertiary Activity Index Grows 2.3% On Month In June-Japan's tertiary activity index rose 2.3% month-on-month in June, after a 2.9% decrease in May, data from the Ministry of Economy, Trade and Industry showed on Tuesday. The tertiary activity rose for the first time in three months in June. Among the individual components, living and amusement-related services, retail trade, transport and postal activities, medical, health care and welfare, wholesale trade, electricity, gas, heat supply and water, business-related services, goods rental and leasing, information and communications increased in June. Meanwhile, finance and insurance, and real estate increased. On a yearly basis, tertiary activity rose 2.9% in June, after a 10.0% growth in the previous month.

CURRENCY NEWS: The U.S. dollar weakened to the lower 109 yen range, as demand for safe heaven resumed amid global coronavirus resurgence concerns. The dollar stood at 109.32-32 yen, down from 109.41-42 yen on Monday.

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