The Japanese market ended the trading session on Thursday in negative territory, as traders preferred to lock in gains from smart gains in the previous session. Weak closing on Wall Street in the previous session on concerns about sustaining economic growth following weak economic data also impacted market sentiment. The strengthening of the local currency, the yen, against the euro and the dollar also provided an opportunity to lock in profit after sharp gains in the previous day. However, the losses were limited as traders remained cautious and stayed in the sidelines ahead of domestic earnings season.
The benchmark Nikkei 225 Index dropped 57.25 points, or 0.59%, to 9,696, while the broader Topix index of all First Section issues was down 4.24 points, or 0.49%, to 861.
On the economic front, a preliminary report released by the Ministry of Economy, Trade and Industry in Japan revealed that retail sales climbed 3.2% on year in June, standing at 11.004 trillion yen. That marked the sixth straight month of increase, and was in line with analysts expectations following 2.8% increase in May. The report further noted that, on a seasonally adjusted monthly basis, retail sales were down 0.4%- again matching expectations following the 2.0% contraction in May. For the second quarter of 2010, overall retail sales were up 3.7% on year to 33.463 trillion yen. Sales had climbed a revised 3.8% in the previous three months.
Light sweet crude oil futures for August delivery ended at $77.14 a barrel in electronic trading, up $0.15 per barrel from previous close at $76.99 a barrel in New York on Wednesday.
Panasonic Corp was the major loser in the market, having declined 7.71%, following reports that the company is mulling plans to dilute Panasonic Electric Works and Sanyo Electric its wholly owned units as early as before end of fiscal 2010. Panasonic Electric Works, following news, surged up 15.40%, while Sanyo Electric soared 26.27% on huge volume.
Trading companies ended in negative territory on profit taking. Mitsubishi Corp. declined 1.15%, Mitsui & Co., fell 1.65%, Sumitomo Corp. shed 1.28%, Itochu Corp. slipped 1.43%, and Toyota Tsusho Corp. edged down 0.22%.
Mixed trading was witnessed among automotive companies. Honda Motor added 0.33%, Nissan Motor Co., gained 1.83% and Mitsubishi Motors rose 1.75%. However, Toyota Motor slipped 0.32%, Suzuki Motor slipped 0.38% and Hino Motors plunged 5.57%.
Real estate stocks also declined on profit taking. Mitsui Fudosan declined 1.48%, Sumitomo Realty & Development lost 1.12%, Tokyu Land Corp. fell 1.52% and Heiwa Real Estate was down 1.38%. Mitsubishi Estate, however, remained unchanged from previous close.
In the U.S., stocks posted notable losses on Wednesday, as the Federal Reserve's Beige Book showed some signs of a stalling economic recovery and the Commerce Department reported an unexpected drop in durable goods orders. The markets fell on the news, which continued to call into question the veracity of an economic rebound in the absence of government stimulus. The Dow fell by 39.81 points or 0.4% to 10,498, the Nasdaq declined by 23.69 points or 1% to 2,265 and the S&P 500 slid by 7.71 points or 0.7% to 1,106.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.