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Japanese shares drop as new virus strain sparks profit-taking

Published 2020/12/22, 05:23
Updated 2020/12/22, 05:24
JP225
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TOPX
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1605
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8801
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4901
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9020
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9202
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4661
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MTHR
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TOKYO, Dec 22 (Reuters) - Japanese shares plumbed two-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 global economic recovery.

The Nikkei average .N225 fell 0.38% to 26,613.09, touching its lowest levels since Dec. 8, although it held above a support from its 25-day moving average at 26,498.

The broader Topix .TOPX lost 0.88% to 1,773.25, with all the 33 sector sub-indexes on the Tokyo exchange trading 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.

Fujifilm Holdings 4901.T tumbled 4.2% 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. 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. and airline operators declined, with East Japan Railway 9020.T down 1.8% and ANA Holdings 9202.T falling 2.2%.

Oil-related shares took a hit as crude prices plunged following the news on the new virus strain. Inpex 1605.T dropped 3.1%.

The index of Mothers start-up shares .MTHR dropped 2.0%, falling decisively below its 100-day moving average, in a bearish signal.

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