Tokyo stocks close lower

TOKYO: Tokyo stocks closed lower on Monday in sluggish trade on growing concerns over another wave of coronavirus infections in Japan.

The Nikkei 225 index dropped 0.64 percent, or 185.09 points, to 28,598.19 while the broader Topix index slipped 0.37 percent, or 7.32 points, to 1,948.99.

"Negative factors, including rising infections in Japan, fuelled uncertainty among investors," Yoshihiro Okumura of Chibagin Asset Management told AFP.

The Japanese government is reportedly considering extending virus measures in Tokyo until after the Olympics begin on June 23.

Trading on Monday was largely stagnant, with US financial markets closed for Independence Day.

"Investors are looking for fresh incentives, with the US market taking a break tonight, while the continued spread of Covid-19 weighs on the market," Okasan Online Securities said.

Local elections were held in Tokyo on Sunday, with Prime Minister Yoshihide Suga's ruling bloc falling short of a majority.

The vote was seen as a key test for his Liberal Democratic Party (LDP) ahead of a national election due later this year.

After the Tokyo poll, "it is difficult to chase the upper side" of the market, Okasan said.

"The Tokyo market lacks the momentum to actively test its upper limit," Okasan said. "We expect the market to continue to search for a sense of direction."

The dollar stood at 111.02 yen in Asian afternoon trade, compared with 111.04 yen on Friday in New York.

SoftBank Group plunged 5.38 percent to 7,391 yen after China's cyber watchdog on Sunday ordered ride-hailing service Didi to be removed from app stores. SoftBank has invested in Didi.