Tokyo stocks close lower on pandemic fears

TOKYO: Tokyo shares closed lower Wednesday on continued worries about coronavirus infections with investors also eyeing corporate earnings reports.

The Nikkei 225 index closed down 0.21 percent or 57.75 points at 27,584.08, while the broader Topix index slipped 0.50 percent or 9.71 points to end at 1,921.43.

"Japanese shares are being weighed down by a rise in virus cases," Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

Tokyo stocks close lower

"The Nikkei index has been volatile since much-awaited Toyota earnings were reported, as the firm kept its full-year forecasts unchanged despite brisk net profit in the first quarter," he said.

Toyota closed down 0.84 percent at 9,970 yen after it said net profit soared more than fivefold in the first quarter, but left its annual forecast unchanged citing "uncertainties" ahead.

Its smaller rivals were mixed, with Nissan ending up 0.43 percent at 620.1 yen while Honda slipped 0.67 percent to 3,547 yen.

After the market close, Honda said it had revised up its full-year sales and profit forecasts as it returned to profit of 222.5 billion yen ($2 billion) in the first quarter to June, from a loss of 89 billion yen a year before.

Nippon Yusen surged 5.47 percent to 6,930 yen after it revised up full-year profit forecasts.

Its rival shipping firm Kawasaki Kisen dropped 3.13 percent to 4,025 yen after investors were disappointed at its decision to postpone dividend payments.

Sony closed down 3.23 percent at 11,075 yen. After the market closed, the firm upgraded its full-year profit forecast on the back of a strong quarterly performance, although the pandemic boom enjoyed by the gaming sector is slowing.

Nippon Steel climbed 3.14 percent to 2,036 yen after it upgraded its annual outlook and expected to make a record high profit.

The dollar fetched 109.11 yen in Asian trade, against 109.05 yen in New York Tuesday.