Japan stocks closed lower on Monday, with the Nikkei 225 declining by 1.11% due to losses in the Banking, Shipbuilding, and Insurance sectors. The poor performance was largely attributed to concerns over rising COVID-19 cases and a potential slowdown in global economic growth.
The best performers of the session on the Nikkei 225 were Kawasaki Kisen Kaisha, Ltd. (TYO:9107), which rose by 2.24% or 75.00 points to trade at 3,425.00 at the close. Meanwhile, Mitsui O.S.K. Lines, Ltd. (TYO:9104) added 1.99% or 70.00 points to end at 3,590.00 and Kao Corp. (TYO:4452) was up 0.97% or 49.00 points to 5,080.00 in late trade.
On the other hand, the worst performers of the session were Mitsubishi Motors Corp. (TYO:7211), which fell by 6.46% or 36.00 points to trade at 521.00 at the close. Mazda Motor Corp (TYO:7261) declined by 5.96% or 78.00 points to end at 1,230.00, and Concordia Financial Group Ltd (TYO:7186) was down 5.29% or 30.00 points to 537.00.
The Banking sector was hit the hardest, with Mitsubishi UFJ Financial Group Inc (TYO:8306) falling by 2.09%, Sumitomo Mitsui Financial Group Inc (TYO:8316) dropping by 2.27%, and Mizuho Financial Group Inc (TYO:8411) declining by 1.85%. The Shipbuilding and Insurance sectors also suffered losses, with Mitsubishi Heavy Industries Ltd (TYO:7011) falling by 1.76% and Tokio Marine Holdings Inc (TYO:8766) declining by 1.79%.
In summary, the Nikkei 225’s decline reflected the general negative sentiment in the market due to the rising COVID-19 cases and fears of a global economic slowdown. The worst performers of the session were largely concentrated in the Banking, Shipbuilding, and Insurance sectors, while the best performers were in the Shipping and Consumer Goods sectors. Investors will be keeping a close eye on market developments and economic indicators in the coming days.
