TOKYO: Japanese shares slipped on Monday, with the Nikkei hitting a two-week low, failing to gain a boost from a Wall Street rally after strong US jobs data, as rising Covid-19 infections in Japan and elsewhere hurt cyclical shares.
Nikkei share average lost 0.64% to 28,598.19, its lowest close in two weeks, while the broader Topix dropped 0.37% to 1,948.99.
That was a clear under-performance following new record highs scaled by Wall Street shares on Friday after jobs data for June showed robust hiring but limited signs of wage inflation.
Many cyclical shares slumped, led by steelmakers, one of the most sensitive sector to the global economy on rising concerns about the Delta variant of Covid-19.
JFE Holdings lost 4.0%, while Nippon Steel shed 3.5%.
Elsewhere, Softbank Group fell 5.4% to seven-month lows after China’s cyberspace regulator ordered smartphone app stores to stop offering Didi Global Inc’s app after finding that it had illegally collected users’ personal data.
Softbank is a major backer of the Chinese ride-hailing start-up.
Raito Kogyo, a construction firm with expertise in slope and foundation improvement, rose 1.3%.
CE Management Integrated Laboratory, which offers geological survey and disaster prevention systems, gained 3.1%.