Snap Stock- Tokyo stocks snap 5-day winning streak as gains locked in
TOKYO (Kyodo) — Tokyo stocks retreated Thursday, snapping a five-day winning streak, as a possible extension of the coronavirus state of emergency prompted investors to secure recent gains.
The 225-issue Nikkei Stock Average ended down 93.18 points, or 0.33 percent, from Wednesday at 28,549.01. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 9.65 points, or 0.50 percent, lower at 1,911.02.
Decliners were led by iron and steel, marine transportation and mining issues.
The U.S. dollar was firm in the lower 109 yen range after Federal Reserve officials indicated the U.S. central bank is edging toward a discussion about tightening monetary policy.
At 5 p.m., the dollar fetched 109.09-11 yen compared with 109.08-18 yen in New York and 108.83-84 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.2204-2206 and 133.14-18 yen against $1.2187-2197 and 133.05-15 yen in New York and $1.2243-2245 and 133.24-28 yen in Tokyo late Wednesday afternoon.
The yield on the benchmark 10-year Japanese government bond was unchanged from Wednesday’s close at 0.070 percent.
Shares were weak from the opening as sentiment was dampened after the governors of prefectures under the COVID-19 state of emergency on Wednesday sought to have the central government extend the measure.
The state of emergency was originally set to end at the end of May in nine prefectures including Tokyo and Osaka, but it may be moved back to June 20, according to government sources.
The move, just two months before Tokyo is due to host the Summer Olympics, served as an excuse for market players to cash in, brokers said.
“The market was weighed by profit-taking after the Nikkei had risen about 600 points over the past five days,” said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
The economic outlook in Japan remains unclear due to the spread of coronavirus infections, Kamitani added.
On the First Section, declining issues outnumbered advancers 1,647 to 474, while 71 ended unchanged.
Shipping companies and steelmakers fell sharply, with Mitsui O.S.K. Lines sinking 135 yen, or 3.1 percent, to 4,265 yen, and Kawasaki Kisen shedding 82 yen, or 2.8 percent, to 2,816 yen.
Kobe Steel dropped 29 yen, or 3.8 percent, at 727 yen, while JFE Holdings slid 61 yen, or 4.1 percent, to 1,434 yen.
Trading volume on the main section rose to 2,404.32 million shares from Wednesday’s 1,096.63 million shares.