Tokyo shares open lower as virus fears linger

TOKYO: Tokyo shares opened lower Thursday with investors wary of possible gloom ahead as Japan's government debates imposing further anti-infection measures, although strong Wall Street shares provided some support.

The benchmark Nikkei 225 index fell 0.08 percent, or 23.96 points, to 28,342.99 in early trade, while the broader Topix index slipped 0.02 percent, or 0.45 points, to 1,937.23.

Tokyo shares are likely to go through a period of anxiety with an impending anti-virus state of emergency for Tokyo clouding the outlook, Okasan Online Securities said in a note.

"The Tokyo market is expected to face heavy resistance," Okasan said.

Still, bargain hunters are willing to pick up good offers, providing general support for the overall market.

Tokyo stocks close higher

"Tokyo is expected to come under another state of emergency, posing further uncertainty for the general economic outlook," Okasan said.

The government of Prime Minister Yoshihide Suga has placed the greater Tokyo region under special anti-virus measures but the new daily infection numbers continue to rise, with an acceleration particularly in recent days.

The government wants to place the capital region under harsher rules with the Tokyo Olympics looming on the horizon. "For Tokyo shares, it is likely to continue to be a time to stay patient," Okasan said.

"For the current gloom to clear, we believe we need to see strong corporate earnings for this reporting quarter and for the Tokyo Olympics to proceed without a hitch," Okasan said. The dollar stood at 110.54 yen little changed from 110.72 during European trade on Wednesday.

Among major shares, Sony fell 0.18 percent to 11,105 yen. Advantest, which makes testing kits for semiconductors, fell 0.93 percent to 9,550.

The new emergency measures sent shares in airlines lower, with ANA Holdings off 2.34 percent at 2,708 yen and Japan Airlines down 2.57 percent at 2,455 yen.

Fast Retailing, operator of Uniqlo, dropped 0.48 percent to 80,570 yen.

Toyota fell 0.38 percent to 9,697 yen.

SoftBank Group rose 0.28 percent to 7,440 yen.