After Wall Street fell … Nikkei closes little changed

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Sharjah 24 – Reuters:Japanese stocks closed nearly flat on Tuesday, as strong earnings from the camera and copier maker helped offset weakness in travel and real estate stocks after Wall Street’s close downturn.

After dropping 1.1 percent in early trade, the Nikkei nearly settled at 23,485.80 points, while the broader Topix index lost 0.09 percent to 1617.53.

The market was supported by positive earnings reports, with Canon’s share jumping more than 8 percent after the company raised its annual earnings forecast and the legal services website operator Bengo4.com revised its course, bringing the stock up 7.5 percent thanks to positive quarterly results.

But sentiment in general was weak with growing concerns about a second wave of coronavirus infections in the United States and Europe, which put pressure on Wall Street on Monday.

The aviation sector index fell the most, to come down by 3.7 percent, as investors focused on the type of support that airlines will receive to overcome the Covid-19 pandemic.

Japan Airlines (Japan Airlines) lost 4.27 percent, as the Nikkei economic daily reported that the company is likely to incur a net loss of about 230 billion yen ($ 2.20 billion) for the fiscal year ending in March 2021. A report also said that the company was seeking financing worth $ 2 billion. 300 billion yen.

The company’s smaller counterpart, Star Flyer, closed 0.9% lower, after losing nearly 7% after a report that the company may sell new shares to obtain financing.

Railroad operators also suffered, with West Japan Railway and Central Japan Railway shares dropping about 3 percent each.

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