Japan Market falls on U.S. recession fears

8 Dec 2022 , 02:55 PM

Japan share market finished lower for second straight session on Thursday, 08 December 2022, as risk sentiments were bearish on tracking soft cues from Wall Street overnight, growing fears over a potential US recession, and yen appreciation against greenback. At closing bell, the 225-issue Nikkei Stock Average index declined 1111.97 points, or 0.4%, to 27,574.43. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.81 points, or 0.35%, to 1,941.50. Total 24 of 33 TSE sectors closed lower, with Electric Appliances, Mining, Electric Power & Gas, Other Financial Business, Banks, and Oil & Coal Products issues being notable losers. On the other side, Marine Transportation and Pharmaceutical issues were notable gainers. Shares of export-oriented companies stumbled as a firm yen erodes companies profits that have been earned overseas when repatriated. Among export-related issues, Tokyo Electron fell 0.9% to 44,400 yen, and chipmaker Murata Manufacturing sank 1.8% to 7,214 yen. Nissan ended down 0.5% at 461.6 yen after reports said talks on rebalancing the alliance between the auto giant and its French partner Renault had not yet reached a deal. Nintendo fell 1.3% to 5,706 yen after a Microsoft executive said the hugely popular ?Call of Duty? game franchise would become available on Nintendos Switch console if the acquisition of the games developer went ahead. ECONOMIC NEWS: Japan posted a current account deficit of 64.1 billion yen in October, the Ministry of Finance reported. Exports were up 26.9% on year at 8.989 trillion yen, while imports spiked an annual 56.9% to 10.864 trillion yen for a trade deficit of 1.875 trillion yen. The capital account showed a deficit of 12.9 billion yen, while the financial account saw a surplus of 481.3 billion yen. Japans gross domestic product contracted 0.8% on year in the third quarter of 2022, the Cabinet Office reported. On a seasonally adjusted quarterly basis, GDP fell 0.2% – again beating forecasts for a decline of 0.3% after climbing 1.1% in the three months prior. Capital expenditure was up 1.5% on quarter, in line with expectations and down from 2.4% in the second quarter. External demand was down 0.6% on quarter versus forecasts for a fall of 0.7% after adding 0.2% in Q2. Private consumption rose 0.1%, shy of forecasts for an increase of 0.3% after rising 1.2% in the previous quarter. CURRENCY NEWS: The dollar bought 136.87 yen in Asian trade, against 136.57 yen in New York and 137.31 yen in Tokyo on Wednesday.Powered by Capital Market – Live News