Tokyo: Nikkei dips on Delta variant anxiety

[TOKYO] Japanese shares dipped on Wednesday as concerns about the rapid spread of the Delta coronavirus variant kept investors on edge, while Toyota Motor succumbed to profit-taking after upbeat earnings.

The Nikkei share average dipped 0.21 per cent to 27,584.08, while the broader Topix fell 0.5 per cent to 1,921.43.

Concerns about surging Covid-19 cases are mounting as the head of the Japan Medical Association called for a nationwide state of emergency.

Toyota Motor gave up 0.9 per cent after the automaker reported a record quarterly operating profit but maintained its annual guidance.

Toyota, which has gained more than 25 per cent so far this year, followed other Japanese companies that fell even after reporting strong earnings as investors already had high expectations.

"It's not that there is huge selling. But no one is buying.

Even when a company announces strong earnings, that certainly pleases its existing investors but there's no additional buyers," said Takenori Yamamoto, a portfolio manager at Norinchukin Zenkyoren Asset.

He expects more buying late in August when the government will likely focus on an economic stimulus ahead of an election that must be held by November.

REUTERS