Tokyo and Hong Kong Bow to New Restrictions Against Pandemic

The Tokyo and Hong Kong stock exchanges closed slightly lower on Tuesday, as more and more restrictions extend or return around the world in the face of the coronavirus.

In Tokyo the flagship Nikkei index lost 0.17% to 26,687.84 points and the extended Topix index dropped 0.47% to 1,782.05 points.

Investor morale in Tokyo has been affected by the procrastination of Wall Street the day before and the suspension of a national tourism support program in Japan, also facing a new wave of Covid-19 threatening to clog its system of health.

The Hang Seng index of the Hong Kong Stock Exchange fell 0.69% to 26,207.29 points. In mainland China, the Shanghai composite index finished almost stable (-0.06% to 3,367.23 points) while that of Shenzhen rose slightly (+ 0.39% to 2,256.43 points).

On the side of values

TOURISM ON THE GROUND: the shares of the two main Japanese airlines ANA (-7.85% to 2,275.5 yen) and Japan Airlines (-3.42% to 1,944 yen) tumbled after the announcement of the suspension of ‘a mechanism to subsidize domestic tourism in Japan. The title of the tour operator HIS meanwhile lost 0.7% to 1,683 yen.

TOYOTA: the Japanese car giant (-0.59% to 7,905 yen) announced on Monday its intention to buy back and then cancel all of the still existing special shares it had issued in 2015, an operation which should cost it at least 3.8 billion euros.

At the time, this operation was aimed at attracting and retaining small Japanese carriers, at a time when the group was accelerating its research and development investments in new automotive technologies.

On the currency and oil side

The yen was stable against the dollar, at a rate of one dollar against 104.08 yen around 0850 GMT against 104.05 yen on Monday at 2100 GMT.

The euro was also barely moving against the yen, with a euro worth 126.30 yen against 126.36 yen the day before.

The European currency was trading for 1.2136 dollar, against 1.2144 dollar as on Monday at 9:00 p.m. GMT.

Oil prices were catching their breath, after reaching their highest levels in 9 months on Monday: around 08:45 GMT the price of a barrel of American crude WTI gave up 0.06% to 46.96 dollars and that of a barrel of London Brent lost 0 , 16% to 50.21 dollars.

Reviewer overview

The Tokyo and Hong Kong stock exchanges closed slightly lower - /10


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