Nikkei drops for third session to 22,330 ahead of long weekend

08-Aug-2020 Intellasia | JapanTimes | 6:50 AM Print This Post

Tokyo stocks extended their losing streak to a third market day on Friday as investors retreated to the sidelines ahead of the three-day weekend in Japan.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange fell 88.21 points, or 0.39 percent, to end at 22,329.94. On Thursday, the key market gauge sagged 96.70 points.

The Topix index of all first-section issues finished down 3.14 points, or 0.20 percent, at 1,546.74, following a 4.83-point decline the previous day.

The Tokyo market got off to a higher start in the wake of Wall Street’s continued advance on Thursday.

But sentiment quickly deteriorated as the semiconductor sector came under strong selling pressure stemming from substantial profit drops for April-June reported by silicon wafer marker Sumco after Thursday’s closing, brokers said.

The Nikkei, which contains many high-priced technology issues, sank deeper in the morning while the broader Topix returned to positive terrain, albeit briefly.

In the afternoon, both indexes stayed on the shady side as investors refraining from active buying before a three-day weekend and the US government’s jobs report for July, which was due later Friday, brokers said.

“The US tech-heavy Nasdaq composite index’s extension of its record-breaking streak brightened sentiment, but participants found it necessary to square their positions,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.

Investors also held active buying in check after a steep fall in the Hong Kong market caused by US President Donald Trump’s signing of executive orders to ban Chinese apps TikTok and WeChat, another brokerage official said.

On the TSE’s first section, falling issues outnumbered rising ones 1,183 to 908 while 82 issues were unchanged. Volume increased to 1.189 billion shares from Thursday’s 1.079 billion shares.

Cosmetics giant Shiseido, camera maker Nikon and nonferrous metals producer Mitsubishi Materials plummeted in response to weak earnings statements.

Furniture retailer Nitori fell for the sixth straight session.

Losers also included technology investor SoftBank Group and automaker Honda.

On the other hand, game-maker Nintendo, electronics retailer Yamada Denki and logistics firm Kintetsu World Express soared thanks to their brisk business performances.

Technology firm Kyocera stretched its rising streak to a sixth session.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 50 points to end at 22,340.

https://www.japantimes.co.jp/news/2020/08/07/business/financial-markets/nikkei-drops-for-third-session/#.Xy00mm0zbs0

 


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