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Japanese Market Declines

The Japanese stock market is declining on Monday following the negative cues from Wall Street Friday amid a sharp surge in new coronavirus infections in several U.S. states and as the U.S. Federal Reserve ordered certain banks to cap dividends and suspend share buyback to conserve funds.

The rising number of coronavirus cases in Tokyo and weak Japanese retail sales data also dampened sentiment.

The benchmark Nikkei 225 Index is down 332.43 points or 1.48 percent to 22,179.65, after touching a low of 22,105.39 earlier. Japanese shares closed higher on Friday.

Market heavyweight SoftBank Group is down 0.7 percent and Fast Retailing is declining more than 1 percent.

In the financial sector, Mitsubishi UFJ is losing more than 2 percent, while Resona Holdings and Sumitomo Mitsui Financial Group are lower by almost 2 percent each.

The major exporters are lower despite a weaker yen. Canon is falling almost 5 percent and Panasonic is losing almost 3 percent. Mitsubishi Electric and Sony are declining more than 1 percent each.

In the tech space, Advantest is rising almost 1 percent, while Tokyo Electron is down 0.7 percent. Among automakers, Honda and Toyota are declining more than 1 percent each.

In the oil sector, Inpex is declining more than 1 percent and Japan Petroleum is lower by almost 1 percent after crude oil prices declined on Friday.

Among the worst performers, SkyPerfect JSAT Holdings is tumbling more than 8 percent and Mitsui E&S is losing almost 6 percent. Credit Saison and J Front Retailing are lower by more than 5 percent each.

In economic news, the Ministry of Economy, Trade and Industry said that retail sales in Japan were down 12.3 percent on year in May. That missed expectations for a drop of 11.6 percent following the 13.7 percent decline in the previous month.

In the currency market, the U.S. dollar is trading in the lower 107 yen-range on Monday.

On Wall Street, stocks closed sharply lower on Friday following a sharp surge in new coronavirus infections in several states. Banking stocks turned lower after the Fed released the results of its stress tests on banks and ordered certain banks to cap dividends and suspend share buyback to conserve funds. Disappointing earnings report from Nike also hurt sentiment.

The Dow plunged 730.05 points or 2.84 percent to settle at 25,015.55, registering its steepest fall in two weeks. The Nasdaq slid 259.78 points or 2.59 percent to 9,757.22 and the S&P 500 tumbled 74.71 points or 2.42 percent to 3,009.05.

The major European markets also closed mostly lower on Friday. Germany's DAX shed 0.73 percent and France's CAC 40 slid 0.18 percent, while the U.K.'s FTSE rose 0.2 percent.

Crude oil futures settled lower on Friday, weighed down by concerns over energy demand outlook in the wake of sharp spikes in new coronavirus infections in several states in the U.S. WTI crude for August declined $0.23 or about 0.6 percent at $38.49 a barrel.

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