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Japan Stocks fall on profit taking

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Capital Market
Last Updated : Apr 06 2021 | 6:31 PM IST
Japan share market finished session lower Tuesday, 06 April 2021, as investors opted to secure profits after a three-day winning streak, after data showed household spending plunged 6.6% year-on-year in February, marking the third consecutive monthly drop. Meanwhile, yen appreciation against greenback and rising COVID-19 cases in and outside of Japan also triggered selloff.

At closing bell, the 225-issue Nikkei Stock Average declined 392.62 points, or 1.3%, to 29,696.63. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 29.20 points, or 1.47%, to 1,954.34.

Total 32 sub-indexes of the 33 sector sub-indexes on the Tokyo exchange traded lower, with Mining, Pharmaceutical, Banks, Air Transportation, Precision Instruments, Oil & Coal Products, and Transportation Equipment issues being notable losers.

Market players moved to take profits, as the benchmark Nikkei stock index's run of three-day closing highs, with the market gaining 3% through Monday.

Investors were also concerned about the increasing number of COVID-19 cases in and outside Japan. Japan's health minister Norihisa Tamura said on Tuesday that the COVID-19 infection rate is consistently rising in Tokyo and urged increased vigilance by all in the capital. Osaka Prefecture in western Japan meanwhile recorded a single-day record of 719 new daily infections on Tuesday, despite new stricter anti-virus measures coming into effect for the region and two other prefectures in Japan.

ECONOMIC NEWS: Japan household spending down 6.6% on year in Feb- Japan's household spending fell a real 6.6% in February from a year earlier for the third straight month of decrease, the Ministry of Internal Affairs and Communications said on Tuesday. Spending by households with two or more people was 252,451 yen ($2,300. Household spending is a key indicator of private consumption, which accounts for more than half of Japan's gross domestic product.

CURRENCY NEWS: The Japanese yen traded at 110.38 per dollar, weaker than levels around 109.5 against the greenback seen last week.

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First Published: Apr 06 2021 | 6:14 PM IST

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