Tokyo stock indexes fell on the first day of Japan’s new fiscal year, stock market data for April 1 show.
Stock market players sold a wide range of stocks today to build on Friday’s gains, while the Bank of Japan’s quarterly business sentiment survey showed Japanese companies are cautious about the coming three-month period.
The Japanese benchmark Nikkei 225 index fell 566.35 points (1.40%) since Friday, leaving the 40,000 zone to settle at 39,803.09, its lowest close since March 18. Japan’s second-largest Topix index closed down 47.40 points, or 1.71%, at 2,721.22.
In the prime stock section of the stock market, the main decliners were shares of oil and coal companies, brokerage houses and transportation equipment manufacturers.
Top losers: Resonac Holdings (-6.51%), Kawasaki Heavy Industries (-6.36%) and Dainippon Screen Mfg (-6.04%).
Growth leaders: Citizen Holdings (+5.05%), Casio Computer (+4.94%) and Omron Cor (+3.83%).
The US dollar was hovering around the 151 yen area and some foreign markets were still closed for holidays. Traders were awaiting the release of US economic data later this week, including the March jobs report, to assess the possible timing of interest rate cuts by the US Federal Reserve. the operators said.
Despite an initial rise of more than 300 points in early trading, the Nikkei reversed course, falling more than 600 points at one point and falling below the 40,000 point threshold.
“Investors typically sell stocks for profits on the first day of the new fiscal year,” said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.
“Sectors that have grown significantly lately, such as chipmakers and automakers, have been particularly targeted by profit-taking,” he added.
The Bank of Japan’s Tankan business report, released shortly before the start of trading, served as an additional sell signal for some investors.
The closely watched survey showed both manufacturers and non-manufacturers were less optimistic about the next three months, with their ratings worsening to 10 and 27 respectively. Brokers said the results fell short of market expectations.
Among the most actively traded stocks in Japan, shares of Nippon Telegraph & Telephone Corp (193.05 million) maintained the lead, marking its 185th consecutive trading day in this ranking with this success. In second place were the shares of Japan’s largest energy company, Tokyo Electric Power Co (TEPCO) (100.1 million), (33d). The third position was occupied by the shares of Mitsubishi Heavy Industries (91.46 million) (3d) for the third day of trading. On the fourth bottom line for the third day in a row (which has never happened) are the shares of the usual top group – the country’s largest financial group, Mitsubishi UFJ Financial Group (75.48 million). The top five trading leaders were closed by the securities of the e-commerce company Rakuten (44.64 million), (1d).
The total trading volume of shares of the Japanese market leaders increased today to 504.73 million, significantly higher than the daily average for March (368.99 million).
Source: Rossa Primavera
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