TOKYO: Japan’s Nikkei closed at a one-week low on Tuesday, as COVID-19 protests in several Chinese cities raised concerns about economic growth, while Eisai slumped after a report that a woman died in a trial of the company’s Alzheimer’s disease treatment.
The Nikkei share average slipped 0.48% to close at 28,027.84, its lowest since Nov. 21, while the broader Topix lost 0.57% to 1,992.97.
US stocks closed sharply lower overnight after protests in major Chinese cities against strict COVID-19 policies sparked concerns about economic growth.
“The Japanese market’s decline is all due to the China issue. The ongoing protests could trigger a slowdown in global economic growth,” said Shuji Hosoi, a senior strategist at Daiwa Securities.
Eisai fell 6.22% and was the biggest drag on the Nikkei.
Honda Motor fell 1.55% after the automaker said its factory in Wuhan was still suspended due to COVID restrictions. Technology investor SoftBank Group lost 1.37% and chip making equipment maker Tokyo Electron fell 1.08%.
Leisure-related shares were strong, with department store operators Takashimaya and Isetan Mitsukoshi Holdings rising 3.66% and 3.32% respectively.
Railway operator West Japan Railway gained 2.12%. Oil explorers rose 1.89% and were the top gainers among the Tokyo Stock Exchange’s 33 industry sub-indexes.
Airliners rose 0.86%.
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