TOKYO, May 21 — Tokyo stocks closed lower today as profit-taking erased early gains generated by the prospect of a state of emergency being lifted in western Japan later in the day.
The benchmark Nikkei 225 index fell 0.21 per cent, or 42.84 points, to close at 20,552.31, while the broader Topix index lost 0.23 per cent, or 3.48 points, to 1,491.21.
Shares opened higher because “hopes are growing as the government is expected to lift the state of emergency for Osaka, Kyoto and Hyogo later today,” said Okasan Online Securities.
Japan last week lifted a state of emergency imposed due to the coronavirus for the majority of the country, but kept it in place for top cities Tokyo and Osaka.
Later today, Prime Minister Shinzo Abe’s government is expected to lift the state of emergency for Osaka and neighbouring regions Kyoto and Hyogo.
But shares closed in negative territory “as investors locked in profits by selling shares which rose recently,” Daiwa Securities chief technical analyst Eiji Kinouchi told AFP.
While there was a general feeling in the global market that the worst of the pandemic has passed, rising China-US tensions continue to cast a shadow over trading floors, along with growing signs of a looming economic catastrophe.
According to data released before the opening bell, Japan booked a trade deficit of ¥930.4 billion (RM37.5 billion) in April, with exports dropping 21.9 per cent and imports down 7.2 per cent year-on-year.
The dollar traded at ¥107.20 in Asian afternoon trade, against ¥107.55 in New York late today.
In Tokyo, blue-chip exporters were mixed. Toyota lost 0.82 per cent to ¥6,362 with SoftBank down 1.29 per cent at ¥4,480.
But Sony gained 0.71 per cent to ¥6,795 with Nintendo up 1.92 per cent at ¥45,060.
Nissan rose 0.41 per cent to ¥382.6 after a father and son suspected of helping fugitive former Nissan chief Carlos Ghosn flee Japan were arrested in the US yesterday. — AFP
