The Japanese stock market is sharply lower on Tuesday, extending the losses in the previous five sessions, with the benchmark Nikkei index plunging nearly 800 points to be just above the 27,600 level, following the firmly negative cues from Wall Street overnight, with investors concerned that the regulatory crackdowns and a collapse at China Evergrande could hurt an already fragile Chinese economy and drag on global growth. The domestic coronavirus situation is also a cause of worry, despite the recent decline in case count.
The benchmark Nikkei 225 Index is losing 811.25 points or 2.85 percent to 27,633.64, after hitting a low of 27,460.29 earlier. Japanese shares closed significantly lower on Monday.
Market heavyweight SoftBank Group is losing almost 6 percent and Uniqlo operator Fast Retailing is down more than 7 percent. Among automakers, Honda is gaining almost 1 percent, while Toyota is losing more than 2 percent.
In the tech space, Advantest is losing almost 5 percent, while Screen Holdings and Tokyo Electron are down more than 5 percent each. In the banking sector, Mitsubishi UFJ Financial is losing more than 1 percent and Mizuho Financial is edging down 0.5 percent, while Sumitomo Mitsui Financial is flat.
The major exporters are lower, with Sony declining more than 2 percent, Canon down almost 1 percent, Mitsubishi Electric declining almost 3 percent and Panasonic is lower by 1.5 percent.
Among the other major losers, Mitsui O.S.K. Lines is losing more than 7 percent, while Z Holdings and Kawasaki Kisen Kaisha are losing almost 7 percent each. Fuji Electric is down more than 6 percent, while Nippon Yusen K.K., Showa Denko K.K. and Taiyo Yuden are declining more than 5 percent each. Unitika, Daikin Industries and Kyowa Kirin are lower by almost 5 percent.
Conversely, Impex is gaining more than 4 percent, while Asahi Group and Kansai Electric Power are adding almost 3 percent each.
In the currency market, the U.S. dollar is trading in the 111 yen-range on Tuesday.
On Wall Street, stocks ended sharply lower on Monday, after languishing in negative territory right through the day’s session. High commodity prices, a surge in Treasury yields, worries about growth and rising inflation rendered the mood bearish.
Among the major averages, the Dow, which plunged to 33,821.58 a little before noon, ended with a loss of 323.54 points or 0.94 percent at 34,002.92. The S&P 500 settled with a loss of 56.58 points or 1.3 percent at 4,300.46, while the tech-laden Nasdaq closed with a loss of 311.21 points or 2.14 percent at 14,255.48, more than 70 points off the session’s low of 14,181.69.
The major European markets also closed lower on the day. The U.K.’s FTSE 100 ended down 0.23 percent, Germany’s DAX declined 0.79 percent and France’s CAC 40 shed 0.61 percent.
Crude oil prices rose sharply on Monday, riding on the decision of OPEC to stick to its current output policy amid rising demand for petroleum products across the world. West Texas Intermediate Crude oil futures for November jumped $1.74 or 2.2 percent at $77.62 a barrel, the highest settlement since November 2014.
Market Analysis
Japanese Market Extends Losses, Dumps 800 Points
2021-10-05 02:25:01
