Japan Stocks fall on soft overseas lead

Japan share market finished session lower on Wednesday, 19 May 2021, on tracking negative lead from Wall Street overnight and concerns over the country's pandemic-induced economic slump. Meanwhile, investors also awaited sideline ahead of the minutes of the Federal Reserve's last policy meeting due later in the day.

At closing bell, the 225-issue Nikkei Stock Average declined 362.39 points, or 1.28%, to 28,044.45. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 12.50 points, or 0.66%, to 1,895.24.

Total 25 sub-indexes of the 33 sector sub-indexes on the Tokyo exchange were down, with Pulp & Paper, Machinery, Glass & Ceramics Products, Mining, Oil & Coal Products, and Textiles & Apparels sectors being notable losers, while Precision Instruments, Air Transportation, and Rubber Products sectors were notable gainers.

 

A jump in Covid-19 infections stoked alarm in Japan amid a shortage of medical staff and hospital beds in Tokyo, prompting a top medical organisation to call for cancellation of the Tokyo Olympics scheduled in July.

Toyota Motor shares declined on reports that the leading automaker will curb domestic production operation for up to eight days in June at two of its plants in northern Japan amid the global semiconductor shortage.

Japan Steel Works shares soared 4.8% and Mitsubishi Chemical 2.9% after announcing the completion of a joint experimental plant to mass-produce gallium nitride wafers.

ECONOMIC NEWS: Japan Industrial Production Increases 3.4% On Year In March -Japan's industrial production increased a seasonally adjusted 1.7% month-on-month in March, final data from the Ministry of Economy, Trade and Industry showed on Wednesday. In the initial estimate, industrial production rose 2.2%. Shipment grew 0.4% monthly in March. According to the initial estimate, shipment rose 0.8%. Inventories gained 0.4% in March versus 0.1% growth in the initial estimate. Inventory ratio grew 0.2% in March. In the initial estimate, inventory ratio declined 0.8%. On a yearly basis, industrial production increased 3.4% in March. According to the initial estimate, output gained 4%.

CURRENCY NEWS: The US dollar hovered on a firmer note around 109 yen in Tokyo trading on Wednesday. At 5 p.m., the dollar stood at 109.08 yen, up from 10896 yen on Tuesday. The euro was at 133.30 yen, up from 132.96 yen.

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