Tokyo shares fall as Covid spreads

TOKYO: Tokyo shares ended lower on Thursday as Japan battles a rapid rise in coronavirus infections.

The benchmark Nikkei index fell 0.96 percent, or 276.53 points, to 28,489.13, while the broader Topix index dropped 0.68 percent, or 13.78 points, to 2,005.58.

Investors sold shares as a technical reaction after sharp gains on Wednesday, with the market's spirit dampened by the rapid spread of coronavirus across Japan.

Japan recorded more than 13,000 new infections on Wednesday, a jump from a few hundred cases per day in recent weeks.

Tokyo stocks close higher after US gains

Projections suggest Tokyo, which reported fewer than 100 new infections per day only two weeks ago, could soon see around 10,000 infections a day.

The virus situation was making for "see-saw trade", Mizuho Securities said.

Regional and local political leaders are bracing themselves for the possibility of medical systems coming under heavy strain, with experts warning that the virus could infect many essential workers and medical professionals.

A stronger yen was also weighing on the market.

The dollar fetched 114.62 yen against 114.53 yen in New York but was down from 115.32 yen in Tokyo on Wednesday.

Investors sorted through corporate earnings for cues to move the market.

But many players refrained from making major moves ahead of a public appearance by Lael Brainard, US President Joe Biden's pick as the new Fed vice chair.

"The Nikkei dropped from early trade partly due to sharp gains the previous day," Okasan Online Securities said in a note.

"Some bargain hunting kicked in once it went below the 28,500 level," with trading becoming mixed towards the close as investor focus shifted to Brainard's Senate appearance, scheduled for later in the day, Okasan said.

Among major shares, Sony dropped 0.34 percent to 14,470 yen. SoftBank Group fell 2.06 percent to 5,566 yen.

Uniqlo-operator Fast Retailing fell 1.92 percent to 59,140 yen. After the market closed, the company reported brisk earnings, with net profit during the three months to November rising 33.0 percent to 93.59 billion yen ($816.6 million).

Toyota firmed 2.23 percent to 2,412 yen. Advantest, which makes testing kits for semiconductors, added 1.58 percent to 10,930 yen.