TOKYO: Tokyo's benchmark Nikkei index closed down for a sixth consecutive session on Monday, with investors cautious about prospects for the Chinese economy, while largely welcoming Japan's new cabinet.
The Nikkei 225 index fell 1.13 percent, or 326.18 points, to 28,444.89, while the broader Topix index lost 0.62 percent, or 12.39 points, to 1,973.92.
"Trading turned cautious after Evergrande suspended trading," said Shinichi Yamamoto, a broker at Okasan Securities.
The embattled property giant, which is drowning in a sea of debt worth more than $300 billion, suspended trading on Monday of its shares on the Hong Kong stock exchange without giving a reason.
The Evergrande crisis has roiled markets in recent weeks on fears that its failure could spill over into the wider Chinese economy and possibly further.
"Investors are concerned that the Evergrande case could eventually affect Japanese firms operating in China," Yamamoto said. Meanwhile, investors largely welcomed the election of Fumio Kishida as Japan's new prime minister and the expected line-up of his cabinet.
"The market regards the recent political moves as a positive factor," Yamamoto said.
Local media reported details of the new government, with the names including a mix of fresh faces and holdovers, "which brought no surprises," Yamamoto added.
The dollar fetched 110.06 yen in Asian afternoon trade, against 111.02 yen in New York late Friday.
In Tokyo, SoftBank Group plunged 2.52 percent to 6,266 yen and Sony lost 0.95 percent to 11,970 yen.
Japan Airlines jumped 2.33 percent to 2,678 yen after Japan lifted the virus state of emergency across the nation last week.
Nissan rose 0.43 percent to 557.7 yen after a report said the automaker is in talks with China's Great Wall Motors to sell its plants in Spain.
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