Nikkei hits 3-week low as new virus strain damps recovery hopes

Mitsui Fudosan Co

22/12/2020 06:33

TOKYO, Dec 22 (Reuters) - Japanese shares plumbed three-week
lows on Tuesday, as investors took profits from stellar gains
over the past couple of months on concerns that a fast-spreading
new coronavirus strain found in Britain could disrupt a swift
global economic recovery.
    The Nikkei average  .N225  fell 1.04%, the biggest drop in
about a month, to 26,436.39, its lowest close since late
November. It fell below its 25-day moving average for the first
time since the start of the rally following U.S. elections in
early November.
    The broader Topix  .TOPX  lost 1.56% to 1,761.12, with all
the 33 sector sub-indexes on the Tokyo exchange ending lower.
    The weakness could be attributed to worries over the new
coronavirus strain but profit-taking ahead of year-end holidays
is a bigger factor, said Yasuo Sakuma, chief investment officer
at Libra Investments. "I have already done so myself," he added.
    Fujifilm Holdings  4901.T  tumbled 6.0% after the Japanese
Health Ministry said its medical review board concluded that
clinical trial data to determine the efficacy of the firm's
COVID-19 drug candidate Avigan was inconclusive.  urn:newsml:reuters.com:*:nL1N2J10ZE
    Oriental Land  4661.T  dropped 2.6% after the Nikkei
business daily reported that an official filing showed Mitsui
Fudosan  8801.T  reduced its stake in the Tokyo Disney Resort
operator. 
    The market was also weighed down by rising concerns over
domestic virus infections as Tokyo Governor Yuriko Koike on
Monday urged the capital's 14 million residents to stay at home
during the upcoming holiday season.  urn:newsml:reuters.com:*:nL4N2J120F 
    Railway and airline operators declined, with East Japan
Railway  9020.T  down 2.1% and ANA Holdings  9202.T  falling
2.3%.
    Oil-related shares took a hit as crude prices plunged
following the news on the new virus strain. Inpex  1605.T 
dropped 5.0%, while Eneos Holdings  5020.T  lost 2.7%.
    The index of Mothers start-up shares  .MTHR  dropped 4.0%,
falling decisively below its 100-day moving average, a bearish
signal, to a three-month low.

 (Reporting by Hideyuki Sano, additional reporting by Tomo
Uetake; Editing by Aditya Soni and Rashmi Aich)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))