Japan Nikkei falls on profit-taking, firm yen

July 16,2020

Japan share market finished session lower on Thursday, 16 July 2020, as investors moved to lock in gains after the Nikkei index's one-month high logged the previous day. Meanwhile, selloff pressure mounted further on yen appreciation against the U.S. dollar and fretted over fresh spikes in virus infections around the world and the reimposition of lockdowns. Geopolitical tensions, particularly between China and the United States, were also fanning uncertainty.

At closing bell, the 225-issue Nikkei Stock Average dropped 175.14 points, or 0.76%, to 22,770.36. The broader Topix index of all First Section issues on the Tokyo Stock Exchange slipped 10.45 points, or 0.66%, at 1,579.06.

Total 17 sub-indices of 33 industry category of Topix index fell into red territory, with Pharmaceutical, Electric Power & Gas, Information & Communication, Services, and Precision Instruments issues being notable losers, while Air Transportation, Real Estate, Iron & Steel, and Textiles & Apparels issues were notable gainers.

The investors opted for profits after the Nikkei ended Wednesday up to its highest close since 10 June 2020 and yen's appreciation against greenback. Losses were slightly extended following reports Tokyo Gov. Yuriko Koike said the metropolitan government is expected to report on Thursday a daily record of over 280 new cases of novel coronavirus.

CURRENCY: The Japanese yen traded at 106.95 per dollar after strengthening sharply from levels above 107.1 yesterday.

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