Japan Stocks fall on fresh coronavirus worries

July 14,2020

Japan share market finished session lower on Tuesday, 14 July 2020, as profit taking selling dominated due to profit booking amid fresh worries over the coronavirus and renewed US-China tensions.

At closing bell, the 225-issue Nikkei Stock Average dropped 197.73 points, or 0.87%, to 22,587.01. The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 7.87 points, or 0.35%, at 1,565.15.

Total 26 sub-indexes of 33 Topix index industry category of declined into red territory, with Fishery, Agriculture & Forestry, Air Transportation, Land Transportation, Services, Mining, Electric Power & Gas, and Marine Transportation issues being notable losers, while Real Estate, Insurance, and Securities & Commodities Futures issues were notable gainers.

Market players moved to lock in profits from the outset, after the Nikkei marked its highest finish in about one month the day before. Market sentiment was also hit from signs the virus is throttling reopening plans in states like California, and concern that equity valuations are stretched with global stocks trading near pre-pandemic highs. Traders are braced for earnings reports this week that will provides clues on the outlook for corporate profits.

Meanwhile, renewed tensions between Beijing and Washington added to the pessimistic mood in markets. The Trump administration rejected China's expansive maritime claims in the South China Sea, reversing a previous policy of not taking sides in such disputes.

CURRENCY: The Japanese yen traded at 107.30 per dollar after weakening from the 106.8 against the greenback yesterday.

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