Tokyo falls before the doubts about the business results of April-June

The Tokyo Stock Exchange fell today in the face of doubts that they are planning about the soundness of the business results of Japanese companies for the April-June quarter,

The benchmark Nikkei index , which includes the 225 most representative securities on the market, fell 50.2 points today, 0.23%, to 21,416.79.

The Topix , a broader index that groups the firms with the highest capitalization, lost 7.59 points, 0.49%, to 1,556.37 whole.

The food, agriculture, fishing and real estate sectors led the losses.

The victory of the ruling formation of the Japanese Conservative Prime Minister, Shinzo Abe, in the elections to renew part of the Upper Chamber paved the way for the VAT hike to be applied in October, which would go from the current 8% to 10%, planned by the Executive.

The measure fears the impact may have for many companies in Japan, which together with the fall of Wall Street on Friday and doubts about the results that the great values ​​of the Nikkei published in the coming days, made the selective back slightly.

Retailers were among the main losers given the damage they can face with the October tax hike.

In this way, the operator of 24-hour stores and supermarkets Seven & i Holdings lost 1.3%, while the cosmetic manufacturer Shiseido fell 1.9%.

Beverage giant Asahi Group Holdings dropped 8.9% on information that it will buy the Australian brewer Carlton & United Breweries for about 11 billion dollars (about 9.9 billion euros) from Anheuser-Busch InBev.

The trading volume rose to 1.63 trillion yen today (some 13,453 million euros), down from 1.92 trillion yen (15,847 million euros) on the previous day.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.

gary@logistics-business-review.com