Japan Market ends lower

Japan share market finished slightly lower in relatively thin trading on Tuesday, 21 February 2023, as investors cautiously awaiting key events later this week, including parliamentary hearings scheduled for Bank of Japan governor nominee Kazuo Ueda and more cues on U.S. monetary policy from a slew of Federal Reserve indicators.

The 225-issue Nikkei Stock Average index fell 58.84 points, or 0.21%, to finish at 27,473.10. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 2.25 points, or 0.11%, to 1,997.46.

Total 20 of 33 TSE sectors ended higher, with Mining, Textiles & Apparels, Oil & Coal Products, Nonferrous Metals, Pulp & Paper, Glass & Ceramics Products, and Marine Transportation issues were notable gainers, while Air Transportation, Land Transportation, Retail Trade, and Banks issues were notable losers.

 

ECONOMIC NEWS: The headline au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) dropped to 47.4 in February from a final reading of 48.9 in January, signalling a solid deterioration in the health of the sector, and one that was the sharpest for two-and-half years. The decline in business conditions mainly reflected steeper reductions in output and new orders, which both fell to the greatest extents since July 2020. More positively, cost and supply pressures showed further signs of easing and manufacturers continued to raise their staffing levels slightly, extending the current sequence of job creation to 23 months.

The au Jibun Bank Flash Japan Services Business Activity Index signalled sustained growth in the service sector during February, rising to 53.6 from a final reading of 52.3 in January. Services activity has now increased in each of the past six months, with the latest solid expansion the fastest since June last year as the most recent wave of the COVID-19 pandemic subsided. New order growth also quickened, while new business from abroad increased slightly. Employment ticked down for the second month running. The combination of stronger new order inflows and falling staffing levels meant that outstanding business accumulated to the greatest degree since the survey began in September 2007. Meanwhile, rates of both input cost and output price inflation quickened from the start of the year. Higher fuel and wage costs were widely mentioned by respondents.

Powered by Capital Market - Live News