Japanese shares weighed by chip stocks as COVID-19 worries persist

Hoya

07/07/2021 04:14

TOKYO, July 7 (Reuters) - Japanese shares fell on Wednesday,
pressured by chip-related stocks, with worries over a resurgence
of COVID-19 infections ahead of the Tokyo Olympics weighing on
sentiment. 
    The Nikkei share average  .N225  slipped 0.86% to 28,394.73
by 0202 GMT, and the broader Topix  .TOPX  dropped 0.65% to
1,941.71.
    The Nikkei was dragged down by chip-related shares, with
Tokyo Electron  8035.T  slipping 0.98%, Advantest  6857.T 
falling 1.34% and Shin-Etsu Chemical  4063.T  losing 3.67%. 
    "It is still hard to find positive news to lift Japanese
shares as the pace for vaccine rollouts is taking a pause and
the number of coronavirus infections in Tokyo is on the rise,
and we have the Olympics amid the pandemic," said Shoichi
Arisawa, general manager of the investment research department
at IwaiCosmo Securities.
    Japan's government is floating proposals that would ban fans
from all events at this month's Olympics which is set to start
later this month, local media reported, as officials scramble to
address public concerns about the spread of the coronavirus.
 urn:newsml:reuters.com:*:nL2N2OJ019
    Arisawa added the Dow's  .DJI  weak finish overnight also
pressuring Japanese stocks. 
    Other local heavyweight stocks also declined. 
    Fast Retailing  9983.T , known for its Uniqlo brand clothing
stores, also dragged on the Nikkei by falling 0.86%. 
    Technology start-up investor SoftBank Group  9984.T  fell
0.54% as Didi Global  DIDI.N , which it backs, fell as much as
25% in early U.S. trading on Tuesday after Chinese regulators
ordered Didi's app be taken down.  urn:newsml:reuters.com:*:nL5N2OI1N7
    All but the precision instrument maker sector  .IPRCS.T  of
the 33 sector sub-indexes on the Tokyo exchange fell, with oil
developers and steel makers  .IPETE.T   .ISTEL.T  leading
declines. 
    Scanners and sensors maker Keyence Corp  6861.T  rose 1.87%
and was the best performer among the 30 core Topix names,
followed by lens maker Hoya  7741.T , which gained 1.52%.
    There were 16 advancers on the Nikkei index against 207
decliners. 
    
    

 (Reporting by Junko Fujita; Editing by Amy Caren Daniel)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))