logo
  

Japanese Market Plummeting 3.5%

Japanese stock market is plummeting 3.5 percent on Monday, extending the losses of the previous three sessions, with the Nikkei 225 tumbling more 1,000 points to fall below the 28,000 mark, following the broadly negative cues from Wall Street on Friday as investors remain spooked after the US central bank said it might raise interest rates sooner than previously expected.

However, the Bank of Japan had maintained its massive monetary stimulus and extended the duration of the special funding program to help pandemic-hit firms.

The benchmark Nikkei 225 Index is down 1,024.36 points or 3.54 percent to 27,939.72, after hitting a low of 27,915.09 earlier. Japanese shares ended modestly lower on Friday.

Market heavyweight SoftBank Group is losing more than 3 percent and Uniqlo operator Fast Retailing is down more than 3 percent. Among automakers, Honda is losing more than 4 percent, Toyota is down almost 2 percent, Nissan Motor is declining almost 4 percent and Mazda is down more than 3 percent.

The major exporters are weak, with Canon losing more than 2 percent, while Mitsubishi Electric and Panasonic are down more than 3 percent each. Sony is flat.

In the tech space, Advantest and Tokyo Electron are losing almost 4 percent, while Screen Holdings is down more than 3 percent. In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are down more than 2 percent each.

Among the other major losers, Suzuki Motor and Nissan Chemical are losing almost 6 percent each, while Shin-Etsu Chemical, Nippon Sheet Glass, Toyota Tsusho, T&D Holdings, JTEKT, Mitsubishi Logistics, Sumitomo Chemical and Mitsubishi Chemical Holdings are all down more than 5 percent each. Nexon, Okuma, Takara Holdings, NTN, Japan Exchange Group and NSK are declining almost 5 percent each.

Conversely, there are no major gainers.
In the currency market, the U.S. dollar is trading in the lower 110 yen-range on Monday.

On Wall Street, stocks moved mostly lower during trading on Friday, following the mixed performance seen in the previous session. With the drop on the day, the Dow ended the session at its lowest closing level in over two months.

The major averages came under pressure going into the close, with the Dow and the S&P 500 hitting new lows for the session. The Dow tumbled 533.37 points or 1.6 percent to 33,290.08, the Nasdaq slid 130.97 points or 0.9 percent to 14,030.38 and the S&P 500 slumped 55.41 points or 1.3 percent to 4,166.45.

The major European markets all also moved sharply lower on the day. While French CAC 40 Index slumped 1.5 percent, the German DAX Index and the U.K.'s FTSE 100 Index tumbled 1.8 percent and 1.9 percent, respectively.

Crude oil prices moved higher on Friday amid optimism about energy demand in the U.S. thanks to reopening of businesses after lockdowns. West Texas Intermediate Crude oil futures for July rose $0.60 or 0.8 percent at $71.64 a barrel. WTI Crude oil futures gained 1 percent in the week.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT