Japan Market ends lower on profit taking

2 Jun 2022 , 05:42 PM

Japan share market finished session lower on Thursday, 02 June 2022, weighed down by profit-taking stemming from a continued Wall Street retreat overnight on rekindled concern over the U.S. Federal Reserves aggressive monetary tightening plans in response to high inflation. However, market losses were limited, as the yens depreciation to lower 130 ranges against the dollar prompted purchases of export-oriented shares as weaker yen boosts their overseas profits when repatriated. At closing bell, the 225-issue Nikkei Stock Average declined 44.01 points, or 0.16%, to 27,413.88. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 12.25 points, or 0.63%, to 1,926.39. Total 26 of 33 TOPIX sectors ended the session lower, with Mining (down 2.1%), Pharmaceutical (down 2.1%), Precision Instruments (down 1.7%), and Services (down 1.7%) issues suffered the largest percentage losses, while Oil & Coal Products (up 0.8%), Insurance (up 0.6%), and Rubber Products (up 0.5%) issues enjoyed the largest percentage gains. US market fell overnight after stronger-than-expected U.S. manufacturing data for May fueled expectations the Fed would further raise interest rates to help tame an overheated economy. Higher borrowing costs could hit corporate profits. Shares of exporters gained on the back of a weaker yen. Mazda Motor advanced 0.3% and Subaru moved up 0.6%. Uniqlo casualwear operator Fast Retailing rallied 2.5% and chip-making equipment manufacturer Tokyo Electron rose 0.36% CURRENCY NEWS: The dollar stood at 130.04 yen, against 130.15 yen in New York and 129.25 yen in Tokyo on Wednesday. Powered by Capital Market – Live News