TSE – Tokyo stocks keep sliding on coronavirus emergency worries

Tokyo stocks continued to fall Tuesday, weighed down by continued concerns about another state of emergency over the coronavirus epidemic in the Tokyo metropolitan area.

The 225-issue Nikkei average of the Tokyo Stock Exchange slid 99.75 points, or 0.37%, to close at 27,158.63. On Monday, the benchmark index sagged 185.79 points.

The Topix index of all first section issues dropped 3.37 points, or 0.19%, to finish at 1,791.22. The index sank 10.09 points the previous day.

Stocks opened lower after all three major U.S. stock indexes, including the Dow Jones Industrial Average, slipped overnight, but were pushed up into positive territory later in the morning thanks to buying on dips.

The market turned lower again in the afternoon, as increased concerns about the resurgence of the novel coronavirus and an adverse economic impact from the government’s declaration of another state of emergency over the virus, planned for Thursday, dampened investor sentiment, brokers said.

“Market players are worried because they are unable to foresee the full scope of measures to be taken under a state of emergency, due to the spike in infection cases,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said.

Investors are concerned that the government may view its initial plan of limiting restrictive measures mainly to the dining industry as insufficient in light of surging infection numbers and expand it, Ichikawa said.

On the other hand, Maki Sawada, strategist of Nomura Securities Co., predicted that the gloomy market mood due to the coronavirus resurgence will not last long thanks to hopes that the spread of coronavirus vaccines will shore up business performances and brighten the economic outlook in the long run.

In the TSE first section, falling issues outnumbered advancing ones 1,184 to 897 while 106 issues were unchanged. Volume increased to 989 million shares from Monday’s 956 million shares.

Sectors that are vulnerable to the coronavirus resurgence and ensuing government measures to limit the movement of people continued to meet with selling, with railway operator JR Tokai falling 2.11% and department store operator Isetan Mitsukoshi losing 2.74%.

Other losers included drugmakers Daiichi Sankyo and Chugai.

On the other hand, chipmaking gear-maker Tokyo Electron, semiconductor test device manufacturer Advantest and other semiconductor-sector issues gained ground.

China-related stocks such as industrial robot maker Yaskawa Electric also attracted buying.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average fell 250 points to 27,070.