Japan Stocks fall as below par BOJ survey

Headline indices of the Japan share market tumbled on Monday, 02 July 2018, as the market mood was dented by downbeat Bank of Japan business sentiment survey data amid trade tensions with Washington. The Bank of Japan's tankan report a quarterly survey of about 10,000 companies showed a reading of 21 among major manufacturers in its June survey against 24 in the March report. All TSE33 issues ended lower, with shares in Rubber Products, Retail Trade, Foods, Land Transportation, Pharmaceutical, Chemicals, Iron & Steel, Air Transportation, Nonferrous Metals, and Oil & Coal Products issyes being notable losers. The benchmark Nikkei 225 index dropped 2.21%, or 492.58 points, to end at 21,811.93, while the broader Topix index was down 2.06%, or 35.60 points, to 1,695.29.

Exporters lost ground. Advantest Corp shed 1.7 percent and Tokyo Electron dropped 1.5 percent. Sharp Corp dropped more than 5 percent on profit taking after rise of 15 percent on Friday after it cancelled plans to issue up to $2 billion in new shares.

 

Shares of Hitachi Chemical tumbled 5.2% after disclosing inappropriate data entries related to lead-acid batteries.

ECONOMIC NEWS:Japan manufacturing sector continued to accelerate with a manufacturing PMI score of 53.0, the latest survey from Nikkei revealed on Monday. That's up from 52.8 in May, and it moves further above the boom-or-bust line of 50 that separates expansion of contraction. Individually, output and employment increased at faster rates in June, while new export orders declined for the first time since August 2016.

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