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Japan Market drops on profit booking, firmer yen

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Capital Market
Japan share market finished session lower on Wednesday, 05 August 2020, as investors opted to take profits following the market's recent gains due to firmer yen against greenback and as downbeat earnings reports underscored the economic blow from the Covid-19 pandemic.

At closing bell, the 225-issue Nikkei Stock Average fell 58.81 points, or 0.26%, to 22,514.85. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 0.55 point, or 0.04%, at 1,554.71.

Total 18 issues of the 33 industry category of Topix index dived into negative territory, with Air Transportation, Land Transportation, Information & Communication, Electric Power & Gas, Rubber Products, and Pulp & Paper issues being notable losers, while Iron & Steel, Nonferrous Metals, Oil & Coal Products, and Mining issues were notable gainers.

 

The Nikkei has rallied 37% from this year's low hit in March but has recently struggled to break above resistance around 23,000 as investors turn more cautious in the face of rising coronavirus cases at home and elsewhere.

Highlighting the impact of the pandemic, Mitsubishi UFJ Financial Group Inc (MUFG), Japan's largest lender by assets, said on Tuesday its net profit more than halved. Shares in MUFG fell 0.2%.

Sony Corp, another major company to report earnings on Tuesday, ended 1.6% lower as worries over its future earnings eclipsed better-than-expected results from the company.

CURRENCY: The Japanese yen traded at 105.69 per dollar after touching levels around 106.40 against the greenback earlier in the trading week. .

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First Published: Aug 05 2020 | 1:19 PM IST

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