TOKYO (dpa-AFX) - The Japanese stock market is significantly lower on Tuesday, extending the slight losses of the previous session, with the benchmark Nikkei index below the 28,800 level, as traders digested local data that showed unemployment rate increased. The news on another impending state of emergency in Tokyo and other areas due to signs of a resurgence in COVID-19 infections is also dampening sentiment. The cues from Wall Street overnight were mixed.
The benchmark Nikkei 225 Index is losing 271.47 points or 0.93 percent to 28,776.55, after hitting a low of 28,735.81 earlier. Japanese shares closed slightly lower on Monday.
Market heavyweight SoftBank Group is losing more than2 percent and Uniqlo operator Fast Retailing is down 1 percent. Among automakers, Honda is losing more than 2 percent, Toyota is down almost 2 percent and Nissan Motor is declining more than 2 percent.
In the tech space, Advantest is flat and Tokyo Electron is edging up 0.3 percent, while Screen Holdings is losing 0.6 percent. In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are losing more than 1 percent each.
The major exporters are mixed, with Sony gaining more than 1 percent. Canon is losing almost 3 percent, while Panasonic and Mitsubishi Electric are down more than 2 percent each.
Among the other major losers, Toyo Seikan Group Holdings and Takashimaya are losing more than 4 percent each, while Kawasaki Heavy Industries, Showa Denko K.K., IHI and Marui Group are down almost 4 percent each. Yamaha Motor, Sumitomo Heavy Industries, JFE Holdings, JTEKT, Tokyu Fudosan Holdings, Nippon Sheet Glass and Konica Minolta are declining more than 3 percent each.
Conversely, NEC is gaining almost 4 percent, Nexon is adding more than 3 percent and Dentsy Group is up more than 2 percent.
In economic news, the unemployment rate in Japan came in at 3.0 percent in May, the Ministry of Communications and Internal Affairs said on Tuesday. That was above expectations for 2.9 percent and was up from 2.8 percent in April. The job-to-applicant ratio was again 1.09, compared to forecasts for 1.08.
Also, the Ministry of Economy, Trade and Industry said that the total value of retail sales in Japan was down 0.4 percent on month in May, following the 4.6 percent drop in April. On a yearly basis, retail sales climbed 8.2 percent, topping expectations for 7.9 percent after rising 11.9 percent in the previous month.
In the currency market, the U.S. dollar is trading in the mid-110 yen-range on Tuesday.
On the Wall Street, stocks closed on a mixed note on Monday as investors largely stayed cautious and selective with their moves. Concerns about the spread of the delta variant Covid-19 in Europe and Asia, as well as the resultant fresh restrictions on travel in several countries weighed on sentiment.
The major averages, the Dow ended the session with a loss of 150.57 points or 0.44 percent at 34,283.27. Meanwhile, the S&P 500 ended up by 9.91 points or 0.23 percent at 4,290.61 and the Nasdaq settled at a record closing high of 14,500.51 with a gain of 140.12 points or 0.98 percent.
Meanwhile, the major European markets moved to the downside on the day amid concerns about fresh travel-related restrictions due to the spread of the delta variant of Covid-19 in several parts of the continent. The U.K.'s FTSE 100 declined 0.88 percent, Germany's DAX ended 0.34 percent down and France's CAC 40 lost 0.98 percent.
Crude oil prices were lower amid concerns about energy demand and on caution ahead the OPEC+ meet, scheduled to take place on Thursday. West Texas Intermediate Crude oil futures for August ended down by $1.14 or about 1.5% at $72.91 a barrel, the lowest close since June 18.
Copyright RTT News/dpa-AFX
© 2021 AFX News
