TOKYO, Sept. 7 (Xinhua) — Tokyo stocks closed lower Monday after inheriting a negative lead from Wall Street as technology issues were offloaded late last week, with the market also weighed down by SoftBank Group Corp. dropping more than 7 percent.
The 225-issue Nikkei Stock Average lost 115.48 points, or 0.50 percent, from Friday to close the day at 23,089.95.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, dropped 6.86 points, or 0.42 percent, to close at 1,609.74.
Wall Street’s tech-heavy Nasdaq fell sharply last week following a protracted period of solid gains, local brokers highlighted.
They explained that tech-linked issues were sold due to worries over valuations becoming too high, with the rout being passed on to Tokyo shares from the get-go on Monday.
Some market strategists said however that despite stocks’ recent downturn, some global economic fundamentals continued to contribute to a broadly held view that the economic recovery from the pandemic is gathering steam.
“The global economic recovery from the pandemic is continuing. U.S. job data were not bad,” Kenji Abe, chief strategist at Daiwa Securities Group Inc., was quoted as saying.
Abe was referring to data released Friday showing that the U.S. unemployment rate for August stood at 8.4 percent, dropping for the fourth straight month.
He also said that the market had been gaining support from expectations the central bank here would continue to buy exchange-traded funds (ETFs) as part of its monetary easing program.
Other analysts maintained that all the positives had been factored in, so the market’s advancement would be hamstrung until fresh, concrete trading cues emerge.
“Because the market had risen by factoring all the positive factors ranging from more stimulus and vaccine developments, it is hard from here to advance further,” Daisuke Uchiyama, senior strategist at Okasan Securities, was quoted as saying.
By the close of play, information and communication, food and construction-oriented issues comprised those that declined the most.
Among technology issues hurt by their peers’ decline on Wall Street, Nikkei heavy weight SoftBank Group tumbled 7.2 percent, dragging down the broader market, while Disco fell 3.9 percent. Tokyo Electron, meanwhile, ended the day 3.7 percent lower.
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Bucking the downward trend, industrial robotics maker Fanuc leapt 6.8 percent following reports the firm will significantly raise production levels of one of its machines, owing to increased demand for automation amid the pandemic.
Air transportation issues gained traction, owing to market players deeming them undervalued.
As such, ANA Holdings added 1.8 percent, while Japan Airlines rose 4.2 percent by the close.
Issues that rose outpaced those that fell by 1,277 to 817 on the First Section, while 78 ended the day unchanged.
On the main section on Monday, 1.062 billion shares changed hands, edging down from Friday’s volume of 1.074 billion shares.
The turnover on the first trading day of the week came to 1.924 trillion yen (18.122 billion U.S. dollars). Enditem
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