Steel Companies Fall on the Japanese Stock Market Due to Concerns About Recovery

Japanese steel producers were under pressure on the Tokyo stock exchange on Wednesday. Fears of new lockdowns in major Japanese cities and the continued rise in corona cases worldwide have fueled concerns about the economic recovery.

 

The Japanese vaccination program is also far behind other large countries. According to Reuters news agency, the government has only vaccinated 1 percent of its population against the coronavirus compared to at least 40 percent in the United States and the United Kingdom.

Tokyo’s leading Nikkei eventually closed 2 percent lower at 28,508.55 points. The main index also lost 2 percent a day earlier due to the resurgence of virus concerns. Major Japanese steelmakers Nippon Steel, JFE Holdings and Kobe Steel lost around 5 percent on fears that a slowdown will hit these companies to reopen the economy.

Toshiba’s technology group fell 4.6 percent after rejecting the $ 20 billion takeover offer from investor CVC Capital Partners. Rakuten lost more than 5 percent. The US and Japan will keep a close eye on the e-commerce company now that part of the Chinese tech group Tencent has become a significant shareholder in Rakuten.

The other major stock market indicators in the Asian region also fell predominantly. Hong Kong’s Hang Seng index fell 1.7 percent. The airlines Cathay Pacific and China Eastern Airlines dropped around 2 percent due to virus concerns. The Kospi in Seoul lost 1.4 percent, and the All Ordinaries in Sydney fell 0.6 percent, despite a more substantial than expected increase in Australian retail sales in March. Investors had a day off in India.

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