Japan Stocks fall on profit booking, geopolitical tensions

Japan share market finished session lower on Wednesday, 17 June 2020, as investors elected to book profit after sharp gains in the previous session amid concerns over a second wave of coronavirus infection. Meanwhile, escalated tensions between North Korea and South Korea also fuelled selloff.

At closing bell, the 225-issue Nikkei Stock Average dropped 126.45 points, or 0.56%, to 22,455.76. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 6.36 points, or 0.4%, at 1,593.45.

Investors chose to secure gains following the Nikkei's sharp rise the previous day as concerns over a resurgence of coronavirus cases in some countries.

 

Investors were also rattled by escalating geopolitical tensions b pertaining to the Korean Peninsula after North Korea demolished an inter-Korean liaison office and rejected an offer by South Korea to send special envoys, vowing to send troops back to the border.

ECONOMIC NEWS: Japan Trade Deficit Narrows To Y833.388 Billion In May- Japan merchandise trade deficit came in at 833.388 billion yen in May, the Ministry of Finance said on Wednesday, down 13.7% on year, following the 930 billion yen deficit in April. Exports were down 28.3% on year to 4.184 trillion yen, following the 21.9% drop in the previous month. Imports tumbled an annual 26.2% to 5.018 trillion yen after sinking 7.2% a month earlier.

CURRENCY: The Japanese yen traded at 107.31 per dollar after seeing levels around 107 earlier in the trading week.

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