Total 31 out of 33 industry category of Topix index dived into negative territory, with Iron & Steel, Banks, Banks, Transportation Equipment, Securities & Commodities Futures, and Wholesale Trade issues being notable losers.
Tokyo market commenced trading with firm footing on the back of upbeat Japanese economic data and surprise expansion in Chinese manufacturing in March, but selling pressure intensified in the late afternoon as the market headed to the end of Japan's fiscal year which brought positioning adjustments.
US market rose overnight on the back of government's efforts to slow the spread of the COVID-19 pandemic and cushion the economy against the impact of a near lockdown of activity across much of the U.S. On Sunday, President Donald Trump ditched the idea of getting the economy back up and running in April and extended stay-at-home guidelines through the end of next month, after the director of the US National Institute of Allergy and Infectious Diseases, Dr Anthony Fauci, who has often contradicted Trump's coronavirus claims, said the pandemic could ultimately kill between 100,000 and 200,000 Americans if mitigation efforts do not succeed. Adding to bullish sentiment in morning trade, China's official Purchasing Managers' Index rose to 52 in March from a collapse to a record low of 35.7 in February, raising hopes that other parts of the global economy will see similar rebounds ahead.
ECONOMIC NEWS: Japan Industrial Output Advances 0.4% On Month In February- Japan industrial production advanced a seasonally adjusted 0.4% on month in February, the Ministry of Economy, Trade and Industry said in Tuesday's preliminary reading, following the 1% increase in January. On a yearly basis, industrial production fell 4.7% following the 2.3% decline in the previous month. Upon the release the data, the METI revised its assessment of industrial production - saying that it fluctuates indecisively but has weakened. Shipments were up 2.6% on month and down 4.7% on year, while inventories fell 2% on month and gained 1.4% on year. The inventory ratio sank 2.5% on month but jumped 8.6% on year. According to the METI's forecast for industrial production, output is expected to sink a seasonally adjusted 5.3% on month in March and rebound 7.5% higher in April.
Japan Retail Sales Growth Slow 0.6% In February-Japan retail sales gained a seasonally adjusted 0.6% on month in February, the Ministry of Economy, Trade and Industry said on Tuesday, following the 1.5% increase in January. On a yearly basis, retail sales gained 1.7 following the 0.4% drop in the previous month.
Japan Unemployment Rate Unchanged At 2.4% In February- Japan unemployment rate came in at a seasonally adjusted 2.4% in February, the Ministry of Communications and Internal Affairs said on Tuesday, unchanged from the previous month. The job-to-applicant ratio was 1.45, down from 1.49 in January. The number of employed persons in February was 66.91 million, an increase of 350,000 from the previous year. The number of unemployed persons in February was 1.59 million, an increase of 30,000 from the previous year.
CURRENCY: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.345, below levels above 100 seen last week. The Japanese yen, often seen as a safe-haven currency, traded at 108.38 per dollar after touching an earlier high of 107.72.
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