Japanese market considerably lower | Nasdaq
(RTTNews) – The Japanese stock market was significantly lower on Wednesday, abandoning some of the gains from the previous three sessions as the Nikkei benchmark broke 31-year highs and surpassed the 30,400 level, following largely negative signals overnight on Wall Street, as traders made a profit, even though they remain concerned about the national coronavirus situation.
Meanwhile, the downsides are limited as traders remain optimistic that a new government will implement new economic measures to mitigate the prolonged impact of the pandemic.
The benchmark Nikkei 225 is down 265.05 points or 0.86% to 30,405.05, after hitting a low of 30,347.30 earlier. Japanese stocks closed sharply higher on Tuesday.
Market heavyweight SoftBank Group lost nearly 5% and operator Uniqlo Fast Retailing was down slightly by 0.2%. Among automakers, Honda lost more than 1% and Toyota fell 0.5%.
In the tech space, Screen Holdings lost nearly 2%, while Advantest added nearly 1% and Tokyo Electron rose 0.3%.
In the banking sector, Sumitomo Mitsui Financial lost almost 2%, while Mitsubishi UFJ Financial and Mizuho Financial fell by more than 1% each. Among the major exporters, Panasonic and Canon are down more than 1% each, Mitsubishi Electric is down almost 1% and Sony is down almost 2%.
Among the other big losers, Tokyo Tatemono is losing more than 4%, while Nitto Denko, NTN, Tokai Carbon and Asahi Group are down almost 4% each. Sumco, Mitsui Fudosan, Tosoh, Taiheiyo Cement, NEXON, Fukuoka Financial, Mitsui Mining & Smelting, Recruit Holdings and T&D Holdings are down more than 3% each.
Conversely, Hitachi Zosen and Kawasaki Kisen Kaisha each gain nearly 3%, while M3 gains nearly 2%. On the economic news side, the total value of basic machinery orders in Japan rose 0.9 percent in July, seasonally adjusted, the Cabinet Office said on Wednesday, to 859.7 billion yen. This missed expectations of a 3.1% increase after the 1.5% contraction in June. On a year-over-year basis, orders for basic machinery rose 11.1% – again below expectations of a 15.7% increase after the 18.6% increase in the previous month. The total value of machine orders received by 280 manufacturers operating in Japan increased 11.7% month-on-month and 49.3% year-on-year in July to reach 2,875.9 billion yen.
In the currency market, the US dollar traded in the upper range of 109 yen on Wednesday.
On Wall Street, stocks moved higher at the start of Tuesday’s session, but came under pressure during the session. Major averages retreated well from their early highs and slipped firmly into negative territory as the day wore on.
After breaking a five-game losing streak on Monday, the Dow Jones slipped 292.06 points or 0.8% to 34,577.57, its lowest closing level in nearly two months. The S&P 500 lost 25.68 points or 0.6% to 4,443.05, while the Nasdaq lost 67.82 points or 0.5% to 15,037.76, closing lower for the fifth consecutive session.
Meanwhile, major European markets ended the day in a mixed bag. While the German DAX index increased by 0.1%, the French CAC 40 index and the British FTSE 100 index fell by 0.4% and 0.5% respectively. Crude oil futures stabilized slightly higher on Tuesday after the Labor Department said U.S. consumer prices rose less than expected last month, while traders also weighed the impact of the tropical storm Nicholas. Crude oil futures were at $ 70.46 per barrel, up one cent from the previous close.
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