Nikkei drops on gloomy BOJ tankan, COVID-19 concerns

  • Reuters
Nikkei drops on gloomy BOJ tankan, COVID-19 concerns

TOKYO, July 1 (Reuters) - Japanese shares ended lower on Wednesday as the Bank of Japan's quarterly corporate survey showed business mood dropped to the worst level in 11 years, while the continued spread of COVID-19 cases in Tokyo also sapped risk appetite.

The benchmark Nikkei average .N225 ended 0.75% lower at 22,121.73.

The Bank of Japan's tankan survey showed the mood among big manufacturers declined to minus 34 last month from minus 8 in March. BOJ survey also indicated that big firms plan to raise capital expenditure by 3.2% in the current fiscal year through March 2021, higher than initially expected.

Investor sentiment was dealt another blow after Japan's Chief Cabinet Secretary Yoshihide Suga said the coronavirus state of emergency could be re-imposed in a worst case scenario. has sought to keep new COVID-19 cases below 20 a day since Japan lifted a state of emergency in late May, but has had six straight days of more than 50 new cases, as of Wednesday. futures for the S&P 500 .Esc1 were last quoted down 0.47%, further pressuring Japanese shares.

All of the 33 sector subindexes on the Tokyo exchange traded in the red. Pharmaceutical .IPHAM.T and textile .ITXTL.T stocks declined the most, falling more than 2% each.

Automobile shares weakened despite the softer yen, as the BOJ survey indicated sentiment among large automobile manufacturers declined to minus 72 from minus 17 in March.

Suzuki Motor Corp 7269.T dropped 4.51%, Honda Motor Co Ltd 7267.T fell 2.03% and Nissan Motor Co Ltd 7201.T declined 1.63%.

The broader Topix .TOPX dipped 1.29% to 1,538.61, its lowest since mid-June.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles