Japanese stocks drop nearly 2% despite tourism boost
17/10/2022 04:54
By Sam Byford
TOKYO, Oct 17 (Reuters) - Japanese stocks fell on
Monday, tracking Wall Street's slump from the previous session,
as investors braced for more signals of global recession,
although tourism-related shares performed well following the
border re-opening last week.
Japan's Nikkei share average plunged well below the 27,000
psychological barrier on opening and stayed there for the entire
morning session, trading down 1.43% at 26,703.
The broader Topix index .TOPX fell 1.12%.
The Nikkei had its biggest percentage gain since March on
Friday. "We expect the market to be softer today in reaction to
that," Nomura Securities strategist Maki Sawada said in a
briefing with reporters, adding that Friday's U.S. consumer
sentiment data further drove share prices down.
High-growth stocks weighed down the index the most, with
online medical services company M3 Inc 2413.T dropping 5.13%
and SoftBank Group Corp 9984.T losing 1.77%.
Department stores were some of the best performers in the
Nikkei. Shares of Isetan Mitsukoshi Holdings Ltd 3099.T jumped
4.48%, Takashimaya Co Ltd 8233.T rose 3.27%, and J.Front
Retailing Co Ltd 3086.T gained 2.14%.
"We think the expectation of a recovery in inbound demand is
continuing," Nomura's Sawada said. "On the TV news this weekend
you could see footage of foreigners with suitcases buying in
bulk, partly due to the weak yen."
Last week, Japan reinstated visa-free travel to dozens of
countries, ending some of the world's strictest border controls
to slow the spread of COVID-19. Prime Minister Fumio Kishida is
counting on tourism to help invigorate the economy and reap some
benefits from the yen's slide to decades-low. urn:newsml:reuters.com:*:nL4N3150R6
Marine transportation business Kawasaki Kisen Kaisha Ltd
9107.T , which also operates a travel agency, gained the most
on the Nikkei with 4.92%. Shares of peer Mitsui O.S.K. Lines Ltd
9104.T were up 3.23%.
Railway and airline companies also rose. Topix air transport
.IAIRL.T and sea transport stocks .ISHIP.T were two of just
three sectors to advance on the index.
Of the Nikkei's 225 constituents, 34 gained, 188 fell, and
three traded flat.
(Reporting by Sam Byford; Editing by Sherry Jacob-Phillips)
((Sam.Byford@thomsonreuters.com;))