Nikkei hits one-month low as new variant spurs slowdown worries
26/11/2021 02:59
TOKYO, Nov 26 (Reuters) - Japan's Nikkei slumped on Friday
to its lowest level in a month, on worries that a new
coronavirus variant found in South Africa could hinder a global
economic recovery.
By 0205 GMT, the Nikkei share average .N225 dropped 2.3%
to 28,829.95, its lowest since Oct. 29, while the broader Topix
.TOPX fell 1.81% to 1,989.03.
For the week, the Nikkei is set to lose 3%, while the Topix
is on track to fall 2.7%.
"The market's fundamentals have been weak as investors kept
selling when the Nikkei got closer to 30,000," said Kazuharu
Konishi, head of equities at Mitsubishi UFJ Kokusai Asset
management.
"So, it easily got damaged by negative news, such as the one
about new virus variant. Although it might be too rough to
conclude that today's declines were only due to the virus."
The variant, detected by scientists in South Africa, may be
able to evade immune responses and has prompted Britain to
hurriedly introduce travel restrictions on South Africa.
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In Japan, heavyweights declined, with Uniqlo clothing store
operator Fast Retailing 9983.T losing 3.13%, technology
investor SoftBank Group 9984.T falling 5.04% and chip-making
equipment maker Tokyo Electron 8035.T slipping 2.62%.
All of Tokyo Stock Exchange's 33 industry sub-indexes were
in the red, with airlines .IAIRL.T and railways .IRAIL.T
leading the declines.
ANA Holdings 9202.T , falling 3.86%, extended its losses
after the airliner raised funds through a sale of convertible
bonds.
Railway operator Keisei Electric Railway 9009.T fell
4.63%.
IHI Corp 7013.T , losing 5.32%, was the biggest percentage
loser on the Nikkei, followed by Pacific Metals 5541.T , which
lost 4.77%.
Sumitomo Osaka Cement 5232.T surged 10.21%, making it the
biggest percentage gainer on the Nikkei, followed by Citizen
Watch 7762.T , which rose 3.26 % and Taiheiyo Cement 5233.T ,
gaining 0.97%.
(Reporting by Junko Fujita; editing by Uttaresh.V)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
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