Weak Earnings Pushes the Japanese Markets Down against JPY

Japanese market index Nikkei 225 tripped low in today’s stock trading to fall nearly 3 percent. It’s now at its lowest level since mid-June as the Japanese yen steps up with weak earnings in the country.

The Nikkei Stock Average ended the session down to 629.23, down by 2.82 percent. Thursday had 21.700. In a broader sense, the Topix index finished down 43.41 points, or 2.82 percent lower than the 1,496.06 at market open.

Japan stocks fall was largely from the industrial sector, rubber products, marine transportation, and mining, specifically.

The US dollar has been weakening against the Japanese yen and fell to its lowest point in more than 4 months. As history implies, the rise of currencies would lead to a fall in its corresponding stock market.

Japanese finance officials met on Friday to discuss the market development, but analysts claim it might not be enough. Tokyo stocks were forced to extend their losses throughout the sessions.

The best performers in the Japanese market today was Ajinomoto Co, Inc, which went up by 11.35% or 194 points. TDK corp added 8.05% to 870 points, and Fuji Electric Co increased 7.17% or 192 points to 2870 yen.

The Tokyo Stock Exchange fell by 3984 to 354 and 60 ended unchanged.

Weak Earnings, Coronavirus Lead the Fall

A major factor is also Japan’s reemerging coronavirus cases in the country, which forced businesses to tone operations down. The daily count of new infections in Japan rose to 463, which set the record for the second day in a row.

The cumulative total in Tokyo now stands at more than 12,000.

Restaurants and bars were requested to close on Thursday to help flatten the spread of infections in the city.

Sumitomo Mitsui DS Asset Management senior strategist Masahiro Ichikawa claims this diminishes hopes for an economic recovery.

There’s also the sluggish performance of domestic companies, which reported weak earnings during the previous quarter. Ichikawa reminded investors of what this implies:

Throughout today’s session, the Japanese market saw giants fall. Advantest hit a cliff with a limit down 1,000 yen or 14.9 percent. The firm ended at 5,700 soon after it reported weaker-than-expected net profit during the first quarter of 2020.

Car giant Honda Motor fell by 141 yen or 5.3 percent to 2,524. Yamaha Motor then decreased by 92 yen or 5.7 percent. Mitsubishi Motor, on the other hand, went down 11 yen, or 5.1 percent at 206 yen.

Japanese market giant Panasonic Corp also went down by 13.29% or 138 points to 900 yen. Nisshinbo Holdings then declined by 14.58% to 107 points to 627 yen.