The Japanese stock market is sharply lower on Tuesday after a long weekend, giving up the gains in the previous two sessions, with the benchmark Nikkei index losing almost 600 points to fall below the 19,900 level, following the firmly negative cues from Wall Street overnight, as worries about potential collapse of China’s real estate firm Evergrande dented sentiment. The domestic coronavirus situation is also a cause of worry, despite the recent decline in case count.
The benchmark Nikkei 225 Index is losing 587.31 points or 1.93 percent to 29,912.74, after hitting a low of 29,832.52 earlier. The market was closed on Monday. Japanese shares closed modestly higher on Friday.
Market heavyweight SoftBank Group is losing more than 5 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is losing almost 3 percent and Toyota is down more than 1 percent.
In the tech space, Advantest is losing more than 2 percent, while Screen Holdings and Tokyo Electron are down almost 3 percent. In the banking sector, Mitsubishi UFJ Financial is losing almost 2 percent, Mizuho Financial is declining more than 1 percent and Sumitomo Mitsui Financial is down almost 1 percent.
The major exporters are lower, with Mitsubishi Electric edging down 0.5 percent and Sony declining more than 1 percent, while Panasonic and Canon are losing almost 2 percent each.
Among the other major losers, Toto is losing more than 6 percent, while Komatsu and Hitachi Construction Machinery are down almost 5 percent each. Kawasaki Kisen Kaisha, Nippon Steel, Mitsui O.S.K. Lines, Yaskawa Electric, Tokai Carbon, Sumitomo Heavy Industries and Yaskawa Electric are declining more than 4 percent each, while Fanuc, Nexon, JFE Holdings and Daikin Industries are lower by almost 4 percent each.
Conversely, Konami Holdings is soaring almost 9 percent and Kansai Electric Power is adding almost 2 percent.
In the currency market, the U.S. dollar is trading in the mid-109 yen-range on Tuesday.
On Wall Street, stocks plunged sharply on Monday, and the major averages all suffered their worst setbacks in several weeks, as worries about potential collapse of China’s real estate firm Evergrande dented sentiment.
The Dow, which plunged to 33,613.03, ended the session with a loss of 614.41 points or 1.78 percent at 33,970.47. The S&P 500 closed lower by 75.26 points or 1.7 percent at 4,357.73, off the day’s low of 4,305.91, while the Nasdaq settled at 14,713.80, recording a loss of 330.06 points or 2.19 percent.
The major European markets also tumbled on the day. While the U.K.’s FTSE 100 Index slumped 0.86 percent, Germany’s DAX plunged 2.31 percent and France’s CAC 40 drifted down 1.74 percent.
Crude oil prices declined sharply on Monday as worries about a likely slowdown in global economic growth raised concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for October ended down by $1.68 or 2.3 percent at $70.29 a barrel.
Market Analysis
Japanese Market Sharply Lower
2021-09-21 02:36:22
