BML 5.01 Decreased By ▼ -0.11 (-2.15%)
BOP 11.87 Increased By ▲ 0.21 (1.8%)
CNERGY 7.20 Increased By ▲ 0.09 (1.27%)
CPHL 89.39 Increased By ▲ 0.98 (1.11%)
DCL 13.80 Increased By ▲ 0.24 (1.77%)
DGKC 166.20 Increased By ▲ 3.68 (2.26%)
FCCL 46.54 Increased By ▲ 0.67 (1.46%)
FFL 16.05 Increased By ▲ 0.06 (0.38%)
GCIL 28.57 Increased By ▲ 0.67 (2.4%)
HUBC 142.37 Increased By ▲ 0.30 (0.21%)
KEL 5.18 Increased By ▲ 0.08 (1.57%)
KOSM 6.35 Increased By ▲ 0.17 (2.75%)
LOTCHEM 20.95 Increased By ▲ 0.86 (4.28%)
MLCF 84.70 Increased By ▲ 2.04 (2.47%)
NBP 120.80 Increased By ▲ 0.23 (0.19%)
PAEL 43.45 Increased By ▲ 2.17 (5.26%)
PIAHCLA 21.20 Decreased By ▼ -1.08 (-4.85%)
PIBTL 8.66 Increased By ▲ 0.14 (1.64%)
POWER 14.05 Increased By ▲ 0.21 (1.52%)
PPL 173.11 Increased By ▲ 0.76 (0.44%)
PREMA 44.68 Decreased By ▼ -1.26 (-2.74%)
PRL 33.14 Increased By ▲ 0.02 (0.06%)
PTC 23.98 Decreased By ▼ -0.70 (-2.84%)
SNGP 121.16 Increased By ▲ 0.32 (0.26%)
SSGC 46.45 Increased By ▲ 1.74 (3.89%)
TELE 8.08 Decreased By ▼ -0.05 (-0.62%)
TPLP 9.70 Decreased By ▼ -0.17 (-1.72%)
TREET 24.29 Increased By ▲ 0.36 (1.5%)
TRG 58.30 Decreased By ▼ -0.46 (-0.78%)
WTL 1.56 Increased By ▲ 0.01 (0.65%)
BR100 13,542 Increased By 105.7 (0.79%)
BR30 39,748 Increased By 330.7 (0.84%)
KSE100 133,370 Increased By 1421.1 (1.08%)
KSE30 40,705 Increased By 317.5 (0.79%)
Markets

Japanese shares drop as virus variant worries hit cyclicals

  • Department store chain operator Takashimaya dropped 4.7%, while rival Isetan Mitsukoshi shed 3.2%.
Published June 29, 2021

TOKYO: Japanese shares slumped on Tuesday, with weaker cyclical stocks outweighing gains in technology firms, as outbreaks of the highly contagious COVID-19 variant Delta raised concerns about a hindrance to global economic recovery.

The Nikkei share average fell 0.81% to 28,812.61, while the broader Topix lost 0.82% to 1,949.48.

"Investors are selling Japanese cyclical shares after losses in the Dow and European stocks. Since Japan does not have stocks that are equivalent to GAFA (big tech) shares, the market is not taking advantage of the Nasdaq's robust finish overnight," said Soichiro Matsumoto, chief investment officer for Japan at Credit Suisse Private Banking.

The Nasdaq and S&P 500 hit all-time highs overnight, led by big tech stocks including Facebook Inc and Amazon.com Inc, while the Dow Jones Industrial Average was dragged down by cyclicals.

"And, there are concerns around the spread of the COVID-19 variant. Prospects of Japan's economic outlook is specially bleak because the country is hosting the Olympics and its impact on the pandemic is unknown."

While Spain and Portugal imposed new restrictions on unvaccinated Britons, 80% of Australians faced tighter curbs due to flare-ups of the virus across the country. In Tokyo, the host of the Tokyo 2020 Olympic Games, two arriving athletes have tested positive for COVID-19.

Pandemic concerns hit cyclical shares such as steelmakers , with Nippon Steel losing 3.8%.

Department store chain operator Takashimaya dropped 4.7%, while rival Isetan Mitsukoshi shed 3.2%.

Oil exploration company Inpex plunged 4.7%, as oil prices dropped overnight on worries about slower fuel demand growth.

Decliners outnumbered advancers by a ratio of four to one.

Shimamura gained 4.8% after the casual clothing chain reported a return to profits in the three months to May from a loss a year earlier.

Comments

Comments are closed.