Tokyo: Nikkei closes lower

[TOKYO] Tokyo's benchmark Nikkei index closed lower on Tuesday, with sentiment weighed by uncertainties from the domestic Covid-19 situation to the fate of the Tokyo Olympics.

The Nikkei 225 fell 0.19 per cent, or 55.68 points, to 28,963.56, but the broader Topix index edged up 0.09 per cent, or 1.80 points, to 1,962.65.

"It's hard for investors to take part in active trading due to a number of uncertain factors, including Japan's coronavirus situation," Yoshihiro Okumura of Chibagin Asset Management told AFP.

Investors are concerned that cases could rebound if emergency restrictions in Tokyo and other regions are lifted on June 20 as planned, Mr Okumura said.

"Among other uncertain elements is the Olympics," he added.

"Even if the Olympics can be held as planned, it is still uncertain if that would be a buying factor or a selling factor" for investors.

Games organisers have ruled out another postponement, and will make a decision later this month on how many spectators - if any - are allowed to attend, with overseas fans already barred.

Japan's economy contracted 1.0 per cent during the three months to March, compared with the previous estimate of a 1.3 per cent quarter-on-quarter contraction, revised Cabinet Office data showed.

The figures, released before the opening bell on Tuesday, did not prompt a strong market reaction.

AFP