Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks extend losses on profit-taking, weak Asian markets

JIJI

Stocks extended their losses Monday, hurt by profit-taking and weak Asian equity markets.

The Nikkei 225 average fell 41.35 points, or 0.19 percent, to end at 21,616.80. On Friday, the key market gauge sagged 98.40 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, was 2.95 points, or 0.19 percent, lower at 1,568.57 after dropping 6.33 points Friday.

The market was weak from the beginning of the morning session, pulled down by the yen’s relative strength and profit-taking mainly in semiconductor-related issues, such as Tokyo Electron, brokers said.

The market moved narrowly in negative territory for the rest of the day, weighed down by the weakness of other Asian stock markets, especially Hong Kong and South Korea, they added.

Brokers also cited concerns over the course of U.S.-China trade talks after U.S. White House economic adviser Larry Kudlow said on CNBC that he would not expect any grand deal in the negotiations to be held in Shanghai starting Tuesday.

“Investors refrained from active selling or buying” in the afternoon before earnings announcements by major Japanese companies, such as industrial robot producer Fanuc and electronics giant Hitachi, and the U.S. Federal Reserve’s policy meeting that starts Tuesday, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

Falling issues outnumbered rising ones 1,091 to 952 in the first section, while 108 issues were unchanged.

Volume increased to 962 million shares from 926 million Friday.

Factory automation equipment maker Keyence fell 4.44 percent after posting lower than expected group operating profit for April-June.

Tokyo Electron dropped for the second straight session after a five-day bull run.

Nippon Television Holdings tumbled 8.13 percent, battered by selling that followed the company’s announcement of weaker than expected operating profit.

Also on the negative side were clothing store chain Fast Retailing and Taisho Pharmaceutical Holdings.

On the other hand, power utility Kansai Electric jumped 4.32 percent after reporting strong operating and net profit for April-June.

Other major winners included technology investor SoftBank Group and shipping firm Nippon Yusen.

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