Japanese shares have declined as concerns about the rapidly spreading Delta coronavirus variant have kept investors in a chokehold. On the flip side, there have been optimistic earnings that have boosted Nippon Steel- a well-established Japanese company, and other seasonal shares.
Some of the country’s most well-regarded companies, such as Toyota Motor, Sony, Honda Motor, and a few trading houses have yet to present the outcome via a report of their results.
The Nikkei, which is the world’s largest financial newspaper, share average dipped 0.16% to 27,569.52, while the broader Topix fell 0.20% to 1,927.28.
Concerns about sky-rocketing COVID-19 cases are intensifying as the Head of the Japan Medical Association has announced a nationwide state of emergency.
“It’s not that there is huge selling. But no one is buying. Even when a company announces strong earnings, that certainly pleases its existing investors but there are no additional buyers,” said Takenori Yamamoto, portfolio manager at Norinchukin Zenkyoren Asset.
Yamamoto believes that there will be an increase in purchases around late August when the government will diverge their focus on an economic stimulus to prepare themselves ahead of an election that will be held by November.
Yet every cloud has a silver lining, and the upbeat earnings did give a boost to some shares.
Nippon Steel jumped 8.1% after the country’s top steelmaker maximized its net profit estimate for the ongoing year by more than 50% well above analysts’ forecasts. That helped to bump up against other steelmakers, with JFE up 3.3% and Kobe Steel gaining 1.5%.
Daikin climbed 4.6% after the manufacturer of air-conditioners posted stronger-than-expected profit growth. Z Holdings gained 6.3% once the internet service firm reported fleet-footed growth in quarterly profit. Moreover, Nichirei Corp dropped 11.6% after the frozen food product firm went on to publish astonishingly weak quarterly profits in the quarter. China’s state media describing online games as “spiritual opium” had adverse effects on game companies, who continued to suffer. Koei Tecmo lost 3.5% while Nexon fell 2.3%.
These were the concluding gains and losses suffered due to the swiftly encapsulating Delta variant, which has halted almost all businesses in Japan.