Tokyo stocks lost more ground Tuesday, weighed down by persistent profit-taking.
The 225-issue Nikkei average of the Tokyo Stock Exchange lost 80.36 points, or 0.30%, to close at 26,467.08, after giving up 203.80 points Monday.
The Topix index of all first-section issues closed 1.94 points, or 0.11%, lower at 1,758.81, following a 15.19-point fall the previous day.
The Tokyo market got off to a weak start, as investors were dismayed at the U.S. Dow Jones Industrial Average’s downturn Monday. The Nikkei average shed over 220 points in the first several minutes.
Investor sentiment was battered by, among others, California’s fresh stay-at-home order to prevent a further rise in the number of coronavirus inpatients, brokers said.
Although stocks cut their losses thanks to activated “buying the dip” in the afternoon, they continued to meet with selling to lock in gains after the recent powerful market rally.
Pointing to spikes in the number of new coronavirus cases and that of serious COVID-19 sufferers, an official at a major securities firm said the pandemic’s resurgence in Japan also dampened sentiment.
Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., observed that profit-taking “has gathered steam since the Nikkei turned top-heavy at levels slightly below the 27,000 threshold.”
In addition, Dow futures’ drop in off-hours trading helped the market extend its losing streak, he noted.
Despite the price indexes’ lower closings, rising issues outnumbered decliners 1,143 to 931 while 105 issues remained unchanged on the TSE first section, where volume fell to 1.029 billion shares from Monday’s 1.166 billion shares.
Industrial robot producer Fanuc and optical equipment-maker Olympus were among major victims to profit-taking.
Dentsu dropped for the fourth consecutive session, after the advertising giant warned that it would log a huge net loss for the second straight year.
Other noticeable losers included automaker Suzuki and drugmaker Astellas.
On the other hand, game-maker Nintendo and other stocks backed by stay-at-home demand rose.
Also on the positive side were Sekisui House and beverage producer Asahi Group.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 80 points to end at 26,490.
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