TOKYO – Tokyo stocks slipped in early trade today as investors assess the impact of a Covid-19 state of emergency in Japan, although rallies on Wall Street provided support.
The benchmark Nikkei 225 index was off 0.35%, or 101.17 points, to 28,919.46 in early trade, while the broader Topix index slipped 0.27%, or 5.12 points, to 1,909.86.
The dollar stood at ¥107.84 (RM4.11), nearly unchanged from the ¥107.89 seen on Friday in New York.
The Tokyo market is facing pressure from renewed coronavirus restrictions being imposed on major commercial hubs, but the strength of United States shares is encouraging investors to pick up bargains.
The Japanese government issued the state of emergency from yesterday for the capital here, and the western hub of Osaka and adjacent areas, asking residents to avoid non-essential outings. It also requested the closure of businesses, such as department stores and bars.
The state of emergency “will serve as a psychological weight, but US shares are moving at high levels and should provide some support”, said Okasan Online Securities in a commentary.
“The Tokyo market will likely remain range-bound” as investors digest corporate earnings and look for promising shares, it said.
US shares have been rising, thanks to promises of economic recovery, backed by strong indicators and strong corporate earnings.
The Japanese market also faces selling pressure after the ruling Liberal Democratic Party lost all three by-elections for legislative seats over the weekend.
Among the major shares, Japan Airlines gained 3.18% to ¥2,271 following reports that it is moving to purchase Chinese low-cost carrier Spring Airlines, aiming to capture Chinese tourism demand after the pandemic.
Sony Group fell 0.72% to ¥11,755. Toyota gave up earlier gains and fell 0.10% to ¥8,269.
But, Honda rose 1.52% to ¥3,282 after announcing that it will aim to produce only electric or fuel-cell vehicles by 2040. – AFP, April 26, 2021
