TOKYO: Tokyo shares closed lower on Thursday, with investors wary of possible gloom ahead as Japan's government plans to reimpose a virus state of emergency in the capital.
The benchmark Nikkei 225 index fell 0.88 percent, or 248.92 points, to 28,118.03, while the broader Topix index slipped 0.90 percent, or 17.36 points, to 1,920.32.
Tokyo stocks faced selling pressure from the outset with an impending anti-virus state of emergency in the capital clouding the outlook, brokers said.
Japan's government is expected to announce Thursday a new virus state of emergency running throughout the Olympics.
"Reimposing the state of emergency created a psychologically negative impact on the market," said Shinichi Yamamoto, a broker at Okasan Securities.
"The uncertainty surrounding the Olympics is also weighing on the market," Yamamoto told AFP.The dollar stood at 110.30 yen, down from 110.63 yen in New York on Wednesday.
The expected new emergency measures sent shares in airlines lower, with ANA Holdings off 1.91 percent at 2,720 yen and Japan Airlines down 2.69 percent at 2,452 yen.
Uniqlo operator Fast Retailing dropped 1.30 percent to 79,900 yen and SoftBank Group lost 0.52 percent to 7,380 yen.