Nikkei falls as coronavirus resurgence in Europe hits sentiment

Credit: REUTERS/KIM KYUNG-HOON

Japan's Nikkei share average fell on Friday as new coronavirus curbs in Europe dimmed hopes of a swift global economic recovery, although losses were limited after Fast Retailing forecast upbeat annual earnings.

TOKYO, Oct 16 (Reuters) - Japan's Nikkei share average fell on Friday as new coronavirus curbs in Europe dimmed hopes of a swift global economic recovery, although losses were limited after Fast Retailing 9983.T forecast upbeat annual earnings.

The benchmark Nikkei share average .N225 dropped 0.41% to 23,410.63. The broader Topix .TOPX lost 0.86% to 1,617.69. For the week, the Nikkei was down 0.89% and the Topix lost 1.8%, with the latter being the largest drop in more than two months.

All but two of the 33 sector sub-indexes on the Tokyo exchange traded lower, with real estate .IRLTY.T, pharmaceuticals .IPHAM.T and land transport .IRAIL.T leading the decline on the main bourse.

Sentiment was weighed down after coronavirus restrictions were reimposed in Europe, with London entering a tighter lockdown and France imposing night curfews in major cities to curb a jump in COVID-19 cases.

Some investors also remained on the sidelines due to uncertainty over the U.S. stimulus talks, and ahead of the U.S. presidential election and earnings reports from domestic firms.

Turnover was subdued with only 1.859 trillion yen ($17.66 billion) of stocks changing hands on the main board, about 20% below the average over the past year.

On the main board, decliners outnumbered gainers by a ratio of roughly 7 to 2.

The Nikkei, however, was helped by gains in index heavyweight Fast Retailing, which jumped more than 4.4% after the operator of casual clothing chain posted better-than-expected earmings.

Fujifilm Holdings 4901.T also jumped 2.5% after the company said it had applied for approval in Japan of its anti-influenza drug Avigan as a treatment for COVID-19.

The Mothers Index .MTHR of start-up firms lost 1.66%, after hitting a 14-year high earlier in the week.

($1 = 105.2600 yen)

(Reporting by Eimi Yamamitsu and Hideyuki Sano; Editing by Aditya Soni and Sherry Jacob-Phillips)

((eimi.yamamitsu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

IRLTY

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More