Roundup: Tokyo stocks close lower, with handouts plan expected to help little

0 Comment(s)Print E-mail Xinhua, November 10, 2021
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TOKYO, Nov. 10 (Xinhua) -- Tokyo stocks closed lower Wednesday on the yen's firmness against the U.S. dollar, with investors expecting the Japanese government's plan for cash handouts to relieve the impact of the COVID-19 pandemic to have a limited effect.

The 225-issue Nikkei Stock Average finished down 178.68 points, or 0.61 percent, from Tuesday at 29,106.78.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 10.81 points, or 0.54 percent, lower at 2,007.96.

Declining issues were led by rubber product, air transportation, and iron and steel issues.

Tokyo shares stayed in negative territory for most of the day and continued to fall in the afternoon, brokers said.

Domestic factors, including the Japanese ruling coalition's agreement to distribute 100,000 yen (about 884 U.S. dollars) in cash and vouchers to those aged 18 and younger, had little help to the market, and the planned measure was considered as unlikely to boost overall consumption, brokers said.

"Even if the coupon was intended to prompt spending, its scope will only be related to parenting and the impact on consumption will not be widespread. The measures are unlikely to improve market sentiment," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

Natsuo Yamaguchi, head of the smaller partner Komeito of the Liberal Democratic Party (LDP) in the ruling coalition, said the economic strategies adopted by Prime Minister Fumio Kishida's government were nearly the same as those by former Prime Minister Yoshihide Suga, adding they are unlikely to significantly alter foreign investors' view of the Japanese economy.

Kishida was re-elected as prime minister in a special parliament session on Wednesday, after the LDP secured majority of votes in the House of Representatives election on Oct. 31.

On the First Section, decliners outnumbered advancers 1,213 to 873, while 97 finished unchanged.

Trading house Itochu fell 2.9 percent, cosmetics maker Shiseido sank 1.5 percent and toilet manufacturer Toto dropped 1.5 percent.

Against the downward trend, issues related to child-rearing grew as they hoped their businesses could benefit from the stimulus measures.

Babysitters dispatching service provider Poppins Holdings surged 7.0 percent, and baby goods maker Pigeon gained 2.3 percent.

Trading volume on the main section declined slightly to 1,153.29 million shares from Tuesday's 1,199.55 million shares. Enditem

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