TOKYO: Japanese stocks fell on Monday by the most in over two weeks after data showed the country's economy shrank at a record pace in the second quarter as the Covid-19 pandemic crimped consumer spending.
Investors took the data in their stride and locked in profits as the economy slowly emerges from lockdowns. Markets did not react to a domestic media report that Prime Minister Shinzo Abe has entered hospital for an examination.
Industrial and healthcare stocks pulled down the Nikkei 225 Index 0.83% to 23,096.75, its biggest one-day fall since July 31. The broader Topix was down 0.84%.
The underperformers among the top 30 Topix names were job placement company Recruit Holdings Co Ltd, down 3.17%, followed by drugs maker Daiichi Sankyo Co Ltd, losing 2.21%.
The Topix 30 stocks that gained the most were industrial conglomerate Hitachi Ltd, up 1.15%, followed by Honda automaker Motor Co Ltd, gaining 0.7%. There were 44 advancers on the Nikkei index against 173 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board was 0.82 billion, compared with the average of 1.22 billion in the past 30 days.
Some investors sold shares of companies that recently reported favourable earnings. Others booked profits on companies in health care and technology that have risen sharply due to expectations that these sectors would benefit from the pandemic.
"The stock market could take some time to catch its breath, because it has already priced in a lot of positive factors," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co.
Comments
Comments are closed for this article.