Japanese shares drop as cyclicals drag, virus worries increase

Yokohama Rubber Co

29/06/2021 04:06

TOKYO, June 29 (Reuters) - Japanese shares slumped on
Tuesday, with weaker cyclical stocks outweighing gains in
technology names, as outbreaks of the highly contagious COVID-19
variant Delta raised concerns about a recovery in the global
economy.
    The Nikkei share average  .N225  fell 0.94% to 28,774.35 by
0208 GMT, while the broader Topix  .TOPX  lost 0.90% to
1,948,03. 
    "Investors are selling Japanese cyclical shares after losses
in the Dow and European stocks. Since Japan does not have stocks
that are equivalent to GAFA shares, the market is not taking
advantage of the Nasdaq's robust finish overnight," said
Soichiro Matsumoto, chief investment officer Japan at Credit
Suisse Private Banking.
    The Nasdaq  .IXIC  and S&P 500  .SPX  hit all-time highs
overnight, fuelled by big tech stocks such as Facebook Inc
 FB.O  and Amazon.com Inc  AMZN.O , while the Dow Jones
Industrial Average  .DJI  was dragged down by cyclicals.  .N 
    "And, there are concerns around the spread of the COVID-19
variant. Prospects of Japan's economic outlook is specially
bleak because the country is hosting the Olympics and its impact
on the pandemic is unknown."
    While Spain and Portugal imposed new restrictions on
unvaccinated Britons, 80% of Australians faced tighter curbs due
to flare-ups of the virus across the country. In Tokyo, the host
of the Tokyo 2020 Olympic Games, two arriving athletes have
tested positive for COVID-19.  urn:newsml:reuters.com:*:nL5N2OA1DY  urn:newsml:reuters.com:*:nL2N2OA19A
 urn:newsml:reuters.com:*:nT9N2NW01J
    Among other individual sectors and shares, energy and steel
indexes  .IMING.T   ISTEL.T  led the declines, while precision
instruments makers  .IPRCS.T  traded higher among the Tokyo
Stock Exchange's 33 industry subindexes.
    Nexon Co Ltd  3659.T , up 4.28%, rose the most on the
Nikkei, followed by NEC  6701.T  gaining 3.69% and Fujitsu 
 6702.T  up 1.15%.
    Yamaha Motor  7272.T , down 5.42%, was the biggest loser on
the Nikkei, followed by Takashimaya   8233.T  losing 4.75% and 
Yokohama Rubber  5101.T  down 4.52%.

 (Reporting by Junko Fujita; editing by Uttaresh.V)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))