Japan Market ends lower on earnings caution

Headline shares of the Japan share market closed down on Monday, 22 July 2019, as investors risk sentiments dampened on following losses on Wall Street late last week after expectations the Federal Reserve will significantly cut its interest rate this month receded. Meanwhile, selloff pressure fuelled on geopolitical tension after Iran's Revolutionary Guards on Friday captured a British-flagged oil tanker in the Gulf after Britain seized an Iranian vessel earlier this month and on caution ahead of the domestic earnings season which starts this week. Most of subsectors of the Topix's index declined, with Food, precision instrument, and pharmaceutical-linked issues being notable losers. At closing bell, the 225-issue Nikkei Stock Average fell 50.20 points, or 0.23%, to 21,416.79, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 7.59 points, or 0.5%, at 1,556.37.

Japanese Prime Minister Shinzo Abe's ruling coalition won a majority in the country's upper house of Parliament in elections on Sunday. That came as Japan remains embroiled in a trade dispute with South Korea.

 

Quarterly earnings reports by Japanese companies will be in full swing later this week, with Canon and Nidec announcing results after the market close on Wednesday.

Shares of Asahi Group Holdings plunged more than 6% after the company announced it will issue up to 200 billion yen (approx. $1.85 billion) of shares to fund its planned purchase of Anheuser Busch InBev's Australian operations.

CURRENCY NEWS: The Japanese yen traded at 108 against the dollar from 107.74 in the previous session.

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