Tokyo: Stocks close lower with wary eyes on virus

[TOKYO] Tokyo stocks closed lower on Monday as investors weighed rising coronavirus infections against the positive effects of new US and Japanese stimulus packages.

The benchmark Nikkei 225 index fell 0.18 per cent, or 48.97 points, to 26,714.42, while the broader Topix index was down 0.23 per cent, or 4.19 points, at 1,789.05.

Shortly before the Tokyo market opened, US lawmakers reached a deal for a nearly US$900 billion Covid-19 relief package for millions of Americans as the nation struggles with the world's largest outbreak of the virus.

At home, Japan's government approved a record US$1 trillion budget for the next fiscal year, including measures to mitigate the economic impact of the pandemic.

The US deal is "prompting purchases, but concerns over a rise in new coronavirus infections at home and abroad are weighing on the market", Mizuho Securities said.

Other analysts agreed that trade lacked a clear sense of direction with investors caught between optimism and pessimism.

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"The Nikkei is facing the 27,000 yen barrier," said Yoshihiro Okumura of Chibagin Asset Management.

"The market needs fresh, positive factors to break it," Mr Okumura told AFP.

In Tokyo, Nissan dropped 3.43 per cent to 562.6 yen and Toyota was down 0.77 per cent at 7,850 yen.

Nintendo slumped 2.20 per cent to 65,250 yen but Sony gained 1.46 per cent at 10,405 yen.

AFP