Tokyo Stocks Close Down On Fresh Virus Surge In Capital

Tokyo, (UrduPoint / Pakistan Point News - 16th Jul, 2020 ) :Tokyo stocks closed lower on Thursday as market sentiment worsened after the capital's governor warned of a record number of daily coronavirus infections.

The benchmark Nikkei 225 index was down 0.76 percent, or 175.14 points, at 22,770.36, while the broader Topix index fell 0.66 percent, or 10.45 points, to 1,579.06.

"Sentiment was dampened by a surge in coronavirus infections in Tokyo," said Yoshihiro Okumura, general manager at Chibagin Asset Management.

Tokyo Governor Yuriko Koike said the number of infections in the capital was expected to reach a record of more than 280 on Thursday.

"The figure was not enormous but it's definitely not good news," Okumura told AFP.

The surge came a day after Koike said Tokyo was on its highest coronavirus alert level, although the move does not mean the city will ask businesses to close or events to be postponed.

Earlier in the day, China said its economy expanded 3.2 percent in the second quarter, but a worse-than-expected drop in retail sales in June suggested consumers are still reticent about spending.

"The growth was better than expected," but the impact of the Chinese figures was limited, Okumura said.

The Dollar fetched 106.94 Yen in Asian afternoon trade, against 106.87 yen in New York late Wednesday.

Among major shares in Tokyo, Toyota lost 0.65 percent to 6,790 yen and chip-testing equipment maker Advantest dropped 2.65 percent to 6,610 yen.

Murata Manufacturing plunged 2.79 percent to 6,433 yen after the parts maker said one of its production units temporarily closed after a worker tested positive for the virus.

But Sony gained 0.61 percent to 8,176 yen with Sharp up 1.44 percent at 1,195 yen.