TSE – Tokyo stocks end lower on coronavirus emergency declaration worries

TOKYO (Kyodo) — Tokyo stocks ended lower Tuesday as selling of transportation companies and retailers weighed on the market as the Japanese government prepared to declare a monthlong coronavirus state of emergency in the capital and neighboring areas later this week.

The 225-issue Nikkei Stock Average ended down 99.75 points, or 0.37 percent, from Monday at 27,158.63. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 3.37 points, or 0.19 percent, lower at 1,791.22.

Decliners were led by land transportation, pharmaceutical and transportation equipment issues.

The U.S. dollar fell to the upper 102 yen range as traders flocked to the perceived safety of the yen for risk-aversion after Prime Minister Yoshihide Suga said in a ruling party meeting that he will decide Thursday on a plan to declare another state of emergency in Tokyo and neighboring prefectures.

At 5 p.m., the dollar fetched 102.93-95 yen compared with 103.10-20 yen in New York and 102.91-93 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.2258-2260 and 126.17-21 yen against $1.2246-2256 and 126.29-39 yen in New York and $1.2263-2264 and 126.20-24 yen in Tokyo late Monday afternoon.

The yield on the benchmark 10-year Japanese government bond fell 0.010 percentage point from Monday’s close to 0.010 percent as the safe-haven debt was bought amid worries about a slowdown in Japan’s economic recovery due to the expected state of emergency declaration.

Shares opened lower, tracking sharp losses on Wall Street overnight, and remained in negative territory for most of the day.

“While a broad range of issues were sold, those hit hard by the pandemic such as airlines and department stores met heavy selling,” said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.

But the market found support above the 27,000 line as technology companies remained in favor on hope that more people going back to teleworking under an expected state of emergency would expand demand for their products, he said.

On the First Section, declining issues outnumbered advancers 1,184 to 897, with 106 ending unchanged.

Department store operator Isetan Mitsukoshi Holdings sank 16 yen, or 2.7 percent, to 569 yen, while restaurant operator Royal Holdings dropped 64 yen, or 3.6 percent, to 1,693 yen and rival Monogatari declined 490 yen or 4.1 percent, to 11,420 yen.

Airlines were lower after reports the Japanese government plans to suspend the entry of businesspeople from some countries who are currently allowed under special arrangements.

Japan Airlines fell 19 yen, or 1.0 percent, to 1,907 yen and ANA Holdings sagged 27.50 yen, or 1.2 percent, to 2,204.50 yen.

Railway operators operating in Tokyo were sold, with Keisei Electric Railway dropping 90 yen, or 2.7 percent, to 3,280 yen and Tokyu losing 27 yen, or 2.2 percent, to 1,207 yen.

Trading volume on the main section rose to 989.53 million shares from Monday’s 956.48 million shares.