Nikkei slips on global virus woes, caution ahead of U.S. elections

Shimano

28/10/2020 06:27

TOKYO, Oct 28 (Reuters) - Japanese shares fell on Wednesday
for the third consecutive session, pulled down by worries that
surging coronavirus cases in Europe and the United States could
further damage an already-battered global economy.
    Also, trading was subdued as the upcoming U.S. presidential
elections kept many investors on the sidelines, analysts said.
    The benchmark Nikkei share average  .N225  fell 0.29% to
close at 23,418.51, while the broader Topix  .TOPX  lost 0.31%
to 1,612.55. 
    All but six of the 33 sector sub-indexes on the Tokyo
exchange traded lower, with miners  .IMING.T , iron and steel
 .ISTEL.T  and insurers  .IINSU.T  leading declines.
    The local market tracked the overnight weakness in U.S.
stocks on rising coronavirus infections and as U.S. lawmakers
struggle to reach an agreement on a stimulus package, said
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management in Tokyo.
    U.S. President Donald Trump acknowledged on Tuesday a
coronavirus economic relief deal would likely come after the
Nov. 3 election.  urn:newsml:reuters.com:*:nL1N2HI13G
    A near 0.4% decline in U.S. stock futures also weighed on
Japanese stocks.
    However, the market got some support from upbeat earnings
reports, with Shimano Inc  7309.T  soaring 17% after the bicycle
parts maker upgraded its forecast for annual operating profit.
 urn:newsml:reuters.com:*:nXB10EG31L
    Japan's index of insurers  .IINSU.T , who rely on foreign
bonds for income, dipped more than 2.8% after U.S. Treasury
yields declined overnight on dwindling hopes for a U.S. stimulus
deal.
    Dai-ichi Life Holdings  8750.T  fell 2.7% and T&D Holdings
 8795.T  dropped 2.8%, while Tokio Marine Holdings  8766.T 
slipped around 3.5%.
    Shares of ANA Holdings  9202.T  closed 0.35% higher, after
rising as much as 4%, after the airline operator on Tuesday
unveiled its restructuring plans and forecast a record operating
loss of 505 billion yen for the year to March.  urn:newsml:reuters.com:*:nL1N2HI0E6
    Furniture retailer Otsuka Kagu Ltd  8186.T  jumped 33.1% to
hit its daily limit after the company said its president would
be stepping down.  urn:newsml:reuters.com:*:nFWN2HI14L

 (Reporting by Eimi Yamamitsu; Editing by Aditya Soni and Rashmi
Aich)
 ((eimi.yamamitsu@thomsonreuters.com;))