Tokyo: Nikkei ends lower as Covid-19 worries mount; game makers slide

[TOKYO] Japan's Nikkei index closed lower on Tuesday as rising cases of Covid-19 weighed on sentiment, while video game makers fell after Chinese media labelled online gaming as "spiritual opium". The Nikkei share average slid 0.5 per cent, with online game producer Nexon's dropping 6.51 per cent.

Other game makers also dragged the index. DeNA fell 3.88 per cent, Konami Holdings dropped 2.26 per cent, Bandai Namco Holdings sank 1.51 per cent and Sony Group slipped 0.91 per cent.

Nintendo, which isn't a part of the Nikkei 225, retreated 1.13 per cent.

The broader Topix sank 0.46 per cent.

Amid worsening investor sentiment, "any uptick in prices is likely to trigger selling," said Koichi Nosaka, a market analyst at Securities Japan.

In China, gaming companies including Tencent Holdings declined after state media said many teenagers are addicted to online games, but shares recouped some losses to close off lows.

Chinese authorities are also struggling to control the spread of the Delta coronavirus variant from the mainland's coast to inland cities.

Meanwhile, Japan is grappling with its own fifth wave, centred on Tokyo - currently the host of the Olympics. New cases surged to a record 12,340 on the last day of July, and remained elevated in August, with more than 8,000 infections on Monday.

"It's hard to buy domestic-demand-related stocks now," said Naito Securities analyst Yoshihiko Tabei.

Airlines dropped 2.28 per cent, making them the worst performers among Topix subsectors after paper and pulp's 3.51 per cent slide.

The biggest losers on the Topix were those who reported disappointing earnings, with auto parts supplier GMB down 15.99 per cent, Edulab down 15.71 per cent and Systemsoft down 14.77 per cent.

The biggest winner was M&A adviser GCA, which surged the daily limit of 28.54 per cent after US boutique investment bank Houlihan Lokey launched a tender offer to acquire the Japanese company.

Elswhere, T.RAD leapt 17.24 per cent and E-Guardian surged 14.62 per cent after posting their financial results.

REUTERS