Tokyo stock indices started the week lower, April 15 stock data shows.
Stocks traded heavily due to global economic uncertainty caused by the escalating conflict in the Middle East, but the decline was limited by a weaker yen, which encouraged buying on dips.
Japan’s benchmark Nikkei 225 index fell 290.75 points, or 0.74%, to settle at 39,232.80. The broader Topix index closed down 6.44 points, or 0.23%, at 2,753.20.
In the prime stock market section, the leading decliners were pharmaceutical companies, airlines, and information and communications companies.
Growth leaders: Tokyo Electric Power (+5.83%), Kansai Electric Power (+4.25%) and Mitsubishi Materials (+4.12%).
Main losers: Astellas Pharma (-7.96%), Takashimaya (-6.66%) and Sumitomo Dainippon Pharma (-3.69%).
The US dollar hit a new 34-year high of 153 yen in Tokyo as Japanese importers bought the currency for clearance sales.
Although the yen is perceived as a safe haven asset, the currency market showed limited reaction after Iran launched a retaliatory missile and drone attack against Israel over the weekend, traders said.
“While there may still be some instability ahead, the market felt that it would be difficult for Israel to act as Iran has expressed its desire to de-escalate.”said Yukio Ishizuki, senior currency strategist at Daiwa Securities Co.
Analysts said stocks remained in negative territory all day as investors sold stocks amid rising geopolitical tensions.
Later in the day, the market recovered some of its losses as investors took advantage of the decline, boosted by a recovery in U.S. stock futures following the Wall Street crash late last week.
“Even as geopolitical risks increase, shares are being bought today in companies that benefit from rising commodity prices.”said Makoto Sengoku, senior equity analyst at Tokai Tokyo Intelligence Laboratory Co.
Among the most actively traded stocks in Japan, the leadership was regained by the shares of Japan’s largest energy company, Tokyo Electric Power Co (TEPCO) (121.37 million), (42d), which today also became growth leaders (+5.83%). Nippon Telegraph & Telephone Corp shares (120.13 million), (195 pence) fell to second place. The third position was occupied by the shares of Mitsubishi Heavy Industries (39.86 million) (13d). Shares of the usual leader, the country’s largest financial group, Mitsubishi UFJ Financial Group (37.59 million), fell to fourth place. The top five business leaders were closed by the leader of today’s decline (-7.96%), the pharmaceutical company Astellas Pharma (27.32 million), which has not yet been included in this top in the last three years and a half.
The total trading volume of shares of the Japanese market leaders increased today to reach 346.27 million.
Source: Rossa Primavera
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