At closing bell, the 225-issue Nikkei Stock Average was down 248.92 points, or 0.88%, to 28,118.03. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 17.36 points, or 0.9%, to 1,920.32.
Trading volume turnover in the 1st section increased to 1,144 million shares from 1,066 million shares in previous session. Trading value turnover increased to 2,608.98 billion yen from 2,293.89 billion yen in previous session.
Total 32 of 33 sectors sub-indexes on the Tokyo exchange ended lower, with worst performers were Mining (down 3.7%), Air Transportation (down 3.5%),Other Financial Business (down 1.7%),Textiles & Apparels (down 1.6%), Oil & Coal Products (down 1.6%), Securities & Commodities Futures (down 1.5%), and Retail Trade (down 1.5%) issues.
The Tokyo market got off to a weak start on reports that the government plans to issue a coronavirus state of emergency in Tokyo for the fourth time and extend the pre-emergency designation for three prefectures surrounding the capital, as well as for the prefecture of Osaka. The Tokyo area is currently under slightly less strict "quasi emergency" curbs.
The Japanese government is expected to make a decision later in the day on the COVID-19 state of emergency in Tokyo, the fourth since the start of the pandemic last year. If an emergency is declared, the Tokyo Olympics, slated to begin July 23 to August 8, are likely to be staged without spectators at Tokyo venues, rather than with the planned maximum cap of 10,000. Investors will be carefully watching whether COVID-19 cases increase during the games, as a rise in infections is expected to pull down the support rate for Prime Minister Yoshihide Suga's government and may lead to political uncertainty
Coronavirus-sensitive names, such as retailers and airlines, met with hefty selling amid worries over tighter operational constraints linked to the epidemic.
Pub chain operator Torikizoku lost 3.8% on selling stemming from a sharp fall in same-store sales in June and concerns over the planned declaration of the virus emergency. Other restaurant chains also came under selling pressure, with Kushikatsu Tanaka falling 4.75% and Kura Sushi 3.23%. Retailers Isetan Mitsukoshi Holdings and Marui Group fell 3.1% and 2%, respectively.
Showa Denko slipped 1.9% after a report said the materials maker planned to sell its underperforming lead-acid battery operations to Japanese private equity fund Advantage Partners.
ECONOMIC NEWS: Japan Posts Y1,979.7 Billion Current Account Surplus In May- Japan posted a current account surplus of 1,979.7 billion yen in May, the Ministry of Finance said on Thursday, up 85.3% on year following the 1,321.8 billion yen surplus in April. Exports jumped 46.5% on year to 6,183.2 billion yen, while imports spiked an annual 6,181.2 billion yen for a trade surplus of 2.0 billion yen. The capital account showed a deficit of 2.0 billion yen and the financial account had a surplus of 2,703.8 billion yen.
CURRENCY NEWS: The U.S. dollar fell into the upper 109 yen range as the yen was bought on speculation that a drop in U.S. Treasury yields would narrow the interest rate gap between the United States and Japan. The Japanese yen traded at 109.85 per dollar, having strengthened earlier this week from above 111 against the greenback.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
