Business

Japanese shares slip as virus resurgence spurs slowdown worries

Japanese shares closed lower on Thursday, weighed down by worries that a resurgence of COVID-19 infections would lead to an extension of restrictions and slow the economic recovery.

First trading day of stock market in Tokyo
FILE PHOTO: A man wearing a facial mask, following the coronavirus disease (COVID-19) outbreak, runs past an electric board showing Nikkei index outside a brokerage at a business district in Tokyo, Japan, January 4, 2021. REUTERS/Kim Kyung-Hoon

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TOKYO: Japanese shares closed lower on Thursday, weighed down by worries that a resurgence of COVID-19 infections would lead to an extension of restrictions and slow the economic recovery.

The Nikkei share average fell 0.29per cent to 28,707.04, while the broader Topix slipped 0.22per cent to 1,939.21.

Japan is likely to extend by two weeks or more coronavirus containment measures in the greater Tokyo area as infection numbers creep up less than a month before the Summer Olympics start.

"Investors are holding their bets as they are worried about a resurgence of the coronavirus," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"Shares that gained on expectations for an economic recovery in the past month are losing momentum. But some investors are buying equities which are cheap relative to U.S. peers and that is limiting declines."

Technology stocks led the fall on Nikkei, with start-up investor SoftBank Group losing 0.63per cent, chip making equipment maker Advantest shedding 1.8per cent and medical equipment maker Terumo dropping 1.53per cent.

The sea transport sector fell 3.84per cent and was the biggest loser among the 33 sector sub-indexes on the Tokyo bourse, with Kawasaki Kisen declining 4.63per cent, Mitsui OSK Lines losing 3.93per cent and Nippon Yusen shedding 3.73per cent.

Furniture and home improvement goods store operator Nitori rose 2.14per cent after posting a record quarterly net profit.

Shin-Etsu Chemical advanced 1.32per cent and was the top gainer among the top 30 core Topix names, followed by Sony Group, which rose 1.16per cent.

Seven & i Holdings Co Ltd slipped 1.51per cent and was the biggest loser on the Topix 30, followed by Mitsui & Co, which fell 1.28per cent.

There were 87 advancers on the Nikkei index against 127 decliners.

The index of Tokyo Stock Exchange's second section fell 0.41per cent and the Mothers Index of start-up firm shares lost 0.6per cent.

(Reporting by Junko Fujita; Editing by Aditya Soni and Subhranshu Sahu)

Source: Reuters