Japan’s Nikkei hits 6-month low on recession fears

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TOKYO – Japan’s Nikkei average market share plummeted to a six-month low on Tuesday, following a widespread sell-off on Wall Street on fears a global rise in coronavirus cases could derail the order. budding economic recovery.

The Nikkei stock average fell 0.41% to 27,537.96 by 0210 GMT, after hitting its lowest level since Jan. 7. The broader Topix fell 0.5% to 1,897.63.

Overnight, all three major US stock indexes fell sharply, with the S&P and Nasdaq both posting their biggest one-day percentage declines since mid-May, as investors feared a shutdown. new COVID-19 dynamics and an extended economic recovery.

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As COVID-19 cases increase in Tokyo, now in its fourth state of emergency, public concern has grown that hosting the Tokyo Olympics with tens of thousands of foreign visitors could push accelerate infection rates in Japan’s capital and introduce variants that are more infectious or more deadly.

“Investors are increasingly concerned about the slowing economic recovery,” said Shoichi Arisawa, general manager of investment research at IwaiCosmo Securities. at IwaiCosmo Securities.

“The drop in US stocks weighed on investor appetite, which was already weak ahead of the weekend’s report and Japanese corporate earnings four days after.”

Japan’s markets will be closed on Thursday and Friday for public holidays, with the opening of Tokyo 2020 on Friday.

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Among Nikkei’s heavyweights, global startup investor SoftBank Group fell 0.79%, while Fast Retailing, owner of Uniqlo clothing store, lost 0.47% and robot maker Fanuc fell 2 ,21%.

Of the 33 industry sub-indices, only precision equipment manufacturers and shippers rose. The energy sector dropped the most with a drop of 3.34% due to weak oil prices.

Canon rose 8.09% after raising its annual operating profit forecast to 43% due to strong printer demand during the pandemic.

Other office equipment makers also rose, with Seiko Epson up 5.86% and Ricoh up 2.49%. Canon’s rival Nikon increased 3.09%. ($1 = 109.5100 yen) (Reported by Junko Fujita; Edited by Subhranshu Sahu)