Japanese shares hit 2-week low as oil rout hurts risk appetite
By Stanley White
TOKYO, April 22 (Reuters) - Japanese shares fell to a two-week low on Wednesday, as investors unwound bets from risk assets following the historic collapse in crude oil prices, while caution ahead of corporate results later this week also weighed on sentiment.
The Nikkei index .N225 fell 1.20% to 19,050.33 by midday, with consumer discretionary and information technology sectors leading declines.
While oil prices steadied on Wednesday after U.S. front-month crude futures turned negative for the first time ever earlier this week, the extent of the price disruption has pushed other financial markets lower, prompting investors to reverse long position in equities. [nL1N2C70AV ] O/R
Denting sentiment further, investors were reluctant to hold big positions in Japanese shares before they announce earnings later this week, which are likely to reveal the economic damage caused by the coronavirus pandemic.
On the Nikkei index, there were 60 advancers against 161 decliners.
The largest percentage losers on the index were industrial machinery maker Yokogawa Electric Corp 6841.T , down 4.72%, followed by oil refiner Idemitsu Kosan Co Ltd 5019.T that fell 4.37%, and digital watch maker Casio Computer Co Ltd 6952.T , down by 4.26%.
The largest percentage gainers on the index were chemical manufacturer Ube Industries Ltd 4208.T , up 3.6%, followed by marine transport company Kawasaki Kisen Kaisha Ltd 9107.T that gained 3.04%, and semiconductor testing equipment maker Advantest Corp 6857.T , up by 2.74%.
Shares of games maker Nintendo 7974.T rose 1.69% after activist investor ValueAct Capital Partners LP said it has built a stake of over $1.1 billion in the company in a bet that the development of new entertainment products will fuel growth. the broader TOPIX index .TOPX fell 0.67% to 1,406.42.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.56 billion, compared with the average of 1.96 billion in the past 30 days.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or