Tokyo Stock Exchange on the Rise Fallowing State of Emergency

Japanese equities closed in positive territory for the third consecutive session, with Prime Minister Shinzo Abe putting an end to the climate of market uncertainty by declaring the long-awaited state of emergency, thus leading investors to cover themselves on the securities of the railway sector and department stores.

The Nikkei closed 2.13% higher at 19.353,24, approaching the highs of 19.564 reached on March 25, while the broader Topix index gained 1.59% at 1.425.47.

The stocks of railway operators shot up, bringing the Tokyo Stock Exchange’s land transport index up 4.1%.

Tobu Railway, Odakiu Electric Railway, Keio and Eat Japan Railway all jumped from 5.2% to 7%.

Department store stocks also picked up despite the closure of the stores.

J.Front Retailing gained 6.6% and Takashimaya also rose 6.1%.

Airlines did well, with Ana Holdings leaping 7.8% and Japan Airlines up 8.8%.

The air transport index jumped 8.2%, the best of the 33 sub-indices in the Tokyo Stock Exchange sector, after a 35% drop since the beginning of the year.

Some stocks in the healthcare sector also follow the upward trend.

Drug manufacturers are doing well, with Chugai Pharmaceutical rising 4.9% to record levels, and Daiichi Sankyo at + 6.5%.

SoftBank canceled the initial losses to end 0.2% higher, although it underperformed the market.

 

Japan  government has announced the following cash payments of ¥ 300,000 to households with reduced revenues. The point is the monthly income from February to June this year when the spread of infection spread,

Households whose income decreases in any of the months from February to June this year, and whose annual income is at the level of exemption from residence tax

In a family with a company employee, a housewife, and a child, there may be cases where the annual income is reduced to ¥ 2,500,000 (¥ 170,000 per month), or the income is reduced by less than half, to less than ¥ 410,000 (¥ 340,000 per month). It looks like that. ”
So quite complicated.

Jiji Press (online April 7) posted a complicated table of cases in the 23 wards of Tokyo due to the different standards of residence tax exemption by local governments. In the case of a company employee in Tokyo’s 23 wards, tax exemption applies to a single person with an annual income of 1 million yen or less and a four-person household with an annual income of 2.55 million yen or less, but the following four examples are shown as applicable cases.

Single person A: Annual income base of 1.25 million yen reduced to 900,000 yen.

Single person B: The monthly income in March was 250,000 yen before the corona (3 million yen based on annual income), but decreased to 100,000 yen after the corona. However, the annual income base is 1.2 million yen, exceeding the tax-exempt level (equivalent to condition 2)

(1) Single: Annual income (1 million yen) Monthly income (83,000 yen)
(2) Two people: annual income (1.56 million yen) monthly income (130,000 yen)
(3) 3 people: annual income (2.05 million yen) monthly income (170,000 yen)
(4) 4 people: annual income (2.55 million yen) monthly income (210,000 yen)
(5) 5 people: annual income (3.05 million yen) monthly income (254,000 yen)

Reviewer overview

Tokyo Stock Exchange on the Rise - /10

Summary

Japanese equities closed in positive territory for the third consecutive session, with Prime Minister Shinzo Abe putting an end to the climate of market uncertainty by declaring the long-awaited state of emergency

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