Tokyo: Stocks close lower ahead of earnings

[TOKYO] Tokyo stocks closed lower Tuesday on concerns over fresh lockdowns in Europe and the prospects for US stimulus, with many investors sticking to the sidelines ahead of corporate earnings.

The benchmark Nikkei 225 index fell 0.96 per cent, or 276.11 points, to 28,546.18 while the broader Topix index lost 0.75 per cent, or 14.00 points, to 1,848.00.

"The worsening situation in Europe discouraged investors from taking risks today," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

European stock markets tumbled Monday amid worries about fresh lockdowns to contain the coronavirus pandemic.

Investors were also concerned about the prospect that the US stimulus could be watered down and not pass for several weeks.

"But the stimulus itself remains sizable and will be seen as a positive factor in the end," Mr Horiuchi told AFP.

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Trading was sluggish as investors remained sidelined ahead of the country's corporate earnings season, brokers said.

AFP