Japanese stock market is significantly lower on Monday, giving up all the gains of the previous session, with the Nikkei 225 falling below the 29,700 level, ignoring the broadly positive cues from Wall Street on Friday on strong US Jobs data. Investors continue to be spooked after Tokyo confirmed 518 fresh coronavirus cases on Sunday.
There are also reports that the Japanese government is potentially keeping the quasi-state of emergency covering Tokyo in place during the Summer Olympics as infections continue to accelerate after the recent slight respite.
The benchmark Nikkei 225 Index is down 170.50 points or 0.59 percent to 28,612.78, after hitting a low of 28,581.08 earlier. Japanese shares ended modestly higher on Friday.
Market heavyweight SoftBank Group is losing almost 5 percent and Uniqlo operator Fast Retailing is down more than 1 percent. Among automakers, Honda is losing almost 1 percent, while Mazda and Toyota are edging down 0.3 percent each. Nissan Motor is adding almost 1 percent.
The major exporters are weak, with Canon and Panasonic edging down 0.2 percent each, while Mitsubishi Electric is losing almost 2 percent. Sony is down more than 1 percent.
In the tech space, Advantest is gaining more than 1 percent, Tokyo Electron is edging up 0.2 percent and Screen Holdings is adding more than 2 percent. In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial are losing more than 1 percent each.
Among the other major losers, JFE Holdings is losing almost 4 percent, Daiwa Securities Group is down more than 3 percent and Nippon Steel is declining almost 3 percent. Showa Denko K.K., Kobe Steel and IHI are down more than 2 percent each.
Conversely, Fujikura is gaining more than 3 percent and Mitsui E&S Holdings is adding more than 2 percent, while Mitsui O.S.K. Lines, Kawasaki Kisen Kaisha and Tokyu Fudosan Holdings are up almost 2 percent each.
In the currency market, the U.S. dollar is trading in the 111 yen-range on Monday.
On Wall Street, stocks showed a strong move to the upside over the course of the trading day on Friday, with traders reacting positively to the closely watched monthly jobs report. The advance lifted all three major averages to new record closing highs.
The major averages reached new highs going into the close of trading. The Dow rose 152.82 points or 0.4 percent to 34,786.35, the Nasdaq advanced 116.95 points or 0.8 percent to 14,639.33 and the S&P 500 climbed 32.40 points or 0.8 percent to 4,352.34.
Meanwhile, the major European markets ended the day mixed. While the German DAX Index climbed by 0.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index both closed slightly below the unchanged line.
Crude oil futures settled marginally lower on Friday, as markets looked ahead to the outcome of the OPEC+ meeting. The West Texas Intermediate Crude oil futures for August ended down by $0.07 or about 0.1% at $75.16 a barrel.
Market Analysis
Japanese Market Significantly Lower
2021-07-05 02:27:13
