Japan: Stocks close lower

Japan share market finished session lower on Thursday, 27 August 2020, as investors opted to lock in profits on the yen's comparative strength against the U.S. dollar and amid caution ahead of U.S. Federal Reserve Chairman Jerome Powell's speech later in the day. Sentiment was also subdued ahead of an expected press conference by Japanese Prime Minister Shinzo Abe on Friday regarding the state of his health.

At closing bell, the 225-issue Nikkei Stock Average declined 82 points, or 0.35%, to 23,208.86. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 8.59 points, or 0.53%, to 1,615.89.

 

Total 28 issues of the 33 industry category of Topix index ended into red territory, with Insurance, Mining, Real Estate, Air Transportation, Land Transportation, Banks, and Marine Transportation issues being notable losers, while Rubber Products, Services, and Warehousing & Harbor Transportation Services issues were notable gainers.

Federal Reserve Chairman Jerome Powell is scheduled to deliver a keynote address on Thursday at the central bank's annual conference in Jackson Hole, Wyoming. The speech is expected to lay out the Fed's plans to keep interest rates low for several years and reveal a strategy for maintaining inflation at its 2% target. Investors will watch closely for any signs of additional monetary support to expedite the US economic rebound.

Among the top underperformers on the Topix 30, mobile network operator KDDI Corp fell 1.95% and Mizuho Financial Group Inc declined 1.87%. Among the best performers on the Topix 30, job placement firm Recruit Holdings Co jumped 6.58%, while precision electronics maker Murata Manufacturing Co rose 0.53%.

ECONOMIC NEWS: Japan's all industry activity index rose 6.1% month-on-month in June, after a 4.1% decline in May, data from the Ministry of Economy, Trade and Industry showed on Thursday. Among components, construction activity declined 2.2% on month in June, following a 2.9% fall in May. Industrial production fell rose 1.9% in June, after a 9.0% decrease in the preceding month. The tertiary industry activity grew 7.9% in June, after a 2.9% fall. On a yearly basis, the all industry activity index fell 10.5% in June, following a 18.1% decline in the prior month.

CURRENCY: The Japanese yen traded at 105.98 per dollar after strengthening yesterday from levels around 106.5 against the greenback.

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