ZCZC
BCN-11
STOCKS-MARKETS-JAPAN-CLOSE
Tokyo stocks close lower as eyes turn to earnings
TOKYO, July 22, 2019 (BSS/AFP) – Tokyo stocks closed lower on Monday as
Japan’s ruling bloc retained its majority in the upper house as widely
expected, with focus now shifting to corporate earnings announcements this
week.
The benchmark Nikkei 225 index lost 0.23 percent, or 50.20 points, to
21,416.79, while the broader Topix index fell 0.49 percent, or 7.59 points,
to 1,556.37.
The upper house election this weekend ended with a ruling bloc victory and
a majority of seats in line with expectations, and did not upset the market,
analysts said.
“As corporate earnings season starts this week… investors’ eyes will
shift away from expectations for excessive money flows to negative factors
such as the worsening of corporate performances,” Okasan Online Securities
said in a commentary.
Resona Holdings said in a note: “A wait-and-see mood will likely
strengthen later this week ahead of results from major companies.”
This week, Canon and Nissan are among the companies that will announce
earnings while there will be a series of macroeconomic data and events,
including US GDP data due on Friday and the European Central Bank meeting on
Thursday.
“Stock markets globally may fluctuate as major events are scheduled to
take place this week,” Hirokazu Kabeya, chief global strategist at Daiwa
Securities, said in a commentary.
The dollar fetched 107.99 yen in Asia trade, compared with 107.72 yen in
New York on Friday.
In Tokyo, some blue-chip exporters were lower, with Sony ending down 0.24
percent at 5,824 yen, and Canon down 1.23 percent at 3,054 yen.
Asahi Group Holdings plunged 8.87 percent to 4,591 yen after the world’s
leading brewer Anheuser-Busch InBev said Friday it is selling its assets in
Australia for 16 billion Australian dollars (US$11.3 billion) to Asahi.
On Wall Street, the Dow ended down 0.3 percent at 27,154.20.
BSS/AFP/HR/1402