Investing.com - Financial Markets Worldwide
⚠ Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Japanese shares drop on pandemic worries on first day of new fiscal year

Published 04/01/2020, 10:43 AM
Updated 04/01/2020, 10:50 AM
JP225
-
TOPX
-
4452
-
4901
-
9020
-
9202
-
9437
-
IAIRL.T
-

TOKYO, April 1 (Reuters) - The Nikkei share average dipped
on Wednesday on the first day of the Japanese new fiscal year as
investors braced for a global recession, sharp cuts in corporate
earnings and dividend payouts.
The Bank of Japan's "tankan" corporate survey showed
Japanese manufacturers turned pessimistic for the first time in
seven years. "Although the data was better than expected, it reflected
the impact of coronavirus on the economy," Yoshihiro Ito, senior
strategist at Okasan Online Securities said.
"We are likely to see a torrent of earnings downgrades and
dividend cuts ahead of earnings announcements."
The Nikkei fell 1.00% to 18,728.65 .N225 while the broader
Topix .TOPX lost 0.68% to 1,393.72.
Defensive shares that performed relatively well in recent
weeks were among the worst performers, as investors took profits
at the start of the new financial year.
Chemical and cosmetics firm Kao Corp 4452.T dropped 5.1%
while mobile carrier NTT DoCoMo 9437.T lost 3.8%.
East Japan Railway 9020.T lost 3.4% on mounting
speculation that the Japanese government may impose tougher
restrictions such as a lockdown in Tokyo to deal with rising
coronavirus infections in the capital.
Airlines .IAIRL.T were the worst performing sector among
the Tokyo Stock exchange's 33 industry subindexes, falling 4.5%.
ANA Holdings 9202.T lost 6.5%.
Fujifilm 4901.T bucked the trend to rise 3.5% as the
clinical test of its Avigan anti-flu drug for COVID-19 patients
started.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.