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Nikkei hits 7-week low on renewed coronavirus concerns
The 225-issue Nikkei Stock Average closed down 590.40 points, or 2.04 percent, from Tuesday at 28,405.52, its lowest close since Feb. 4. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 42.90 points, or 2.18 percent, lower at 1,928.58.
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Volatility looms: Pedestrians walk past a stock indicator board showing share prices of the Tokyo Stock Exchange (left) and the New York Dow (right) in Tokyo on Tuesday. Tokyo stocks opened lower on Tuesday, extending losses on Wall Street, as investors looked ahead to meetings of the United States and Japanese central banks. (AFP/Kazuhiro Nogi)
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okyo stocks ended sharply lower Wednesday, with the benchmark Nikkei hitting a seven-week low, as resurging coronavirus cases in Europe have cast a shadow over the global economic outlook.
The 225-issue Nikkei Stock Average closed down 590.40 points, or 2.04 percent, from Tuesday at 28,405.52, its lowest close since Feb. 4. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 42.90 points, or 2.18 percent, lower at 1,928.58.
Every industrial category lost ground, led by air transportation, mining and marine transportation issues.
The US dollar was under pressure in the mid-108 yen zone as traders' risk appetite weakened after several European countries extended or reintroduced lockdown measures as they brace for a third wave of infections, dealers said.
In the stock market, a broad range of issues met selling from the outset. The Nikkei extended its losing streak to a fourth day and the Topix to a third day.
"The lockdowns came despite continued vaccinations. So people's concern grew rapidly," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. Optimism about the global economic outlook is now fading, he added.
The market had been underpinned since February as investors took heart from COVID-19 vaccine rollouts worldwide. But stocks are coming under pressure while going through a correction phase, brokers said.
On the First Section, declining issues outnumbered advancers 2,026 to 139, while 28 ended unchanged.
Airlines notably declined amid fears that a prolonged pandemic with travel restrictions would further deteriorate their earnings.
Japan Airlines plunged 200 yen, or 7.8 percent, to 2,372 yen, and ANA Holdings tumbled 191.50 yen, or 7.2 percent, to 2,463.00 yen.
Gloomier prospects for the world economy also weighed on energy and raw material issues.
Oil explorer Inpex lost 45 yen, or 5.7 percent, to 746 yen, while Japan Petroleum Exploration slid 122 yen, or 5.5 percent, to 2,089 yen. Nippon Steel sagged 95.50 yen, or 5.1 percent, to 1,781.00 yen.
Trading volume on the main section rose to 1,591.35 million shares from Tuesday's 1,371.29 million shares.
