Japan Market extends losses on gloomy earnings

Japan share market finished lower for third straight session on Friday, 07 August 2020, as risk sentiments dented on weaker than expected April-June earnings reports by Japanese companies and ahead of a long weekend. At closing bell, the 225-issue Nikkei Stock Average fell 88.21 points, or 0.39%, to 22,329.94. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 3.14 points, or 0.2%, at 1,546.74. Japan stock markets will be closed on Monday for a public holiday.

Total 19 issues of the 33 industry category of Topix index dived into negative territory, with Nonferrous Metals, Metal Products, Chemicals, Fishery, Agriculture & Forestry, Iron & Steel, and Glass & Ceramics Products issues being notable losers, while Air Transportation, Mining, Land Transportation, Marine Transportation, and Warehousing & Harbor Transportation Services issues were notable gainers.

 

A series of disappointing earnings and forecasts from domestic companies due to the COVID-19 pandemic have weighed on the Japanese market for the past few sessions. Although some investors argue that the decline in corporate profits has bottomed out and earnings will gradually recover.

SUMCO Corp shares slid 9% after reporting a 26.8% decline in its January-September net profit.

Shiseido Co shares 8.6% after the cosmetics firm forecast a net loss and lower dividend for the full year.

Square Enix Holdings Co shares rose 12.4% and marked a record high after the gaming company posted a 241.4% increase in its operating profit for the three-month period ended June 2020.

Japanese game maker Nintendo shares jumped 2.58% after the firm reported Thursday a 428% surge in profits.

CURRENCY: The Japanese yen traded at 105.58 per dollar after seeing levels around 106.4 against the greenback earlier in the trading week. .

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