Nikkei Closes In Red Amid Pandemic Fears, US Stimulus Delay

Nikkei Closes In Red Amid Pandemic Fears, US Stimulus Delay

Nikkei Closes In Red Amid Pandemic Fears, US Stimulus Delay

(Reuters) – Japanese stocks slipped on Wednesday as the market reacted to declines in major global markets after a long weekend in the country, as well as fears over rising coronavirus cases and delayed U.S. stimulus.

The biggest declines were in automakers and other undervalued stocks, but losses were limited as gaming and internet stocks outperformed the market amid concerns over the COVID-19 pandemic.

The Nikkei fell 0.06% to 23,346.49, while the broader Topix sank 0.13% to 1,644.25.

“There are concerns that (the number of) cases of coronavirus could rise with lower temperatures. In addition, investors are worried about the delay in US stimulus given that it is the massive economic package that has supported the market,” said Fumio Matsumoto, chief strategist at Okasan Securities.

Fujifilm rose 4.9% after the company said late-stage research on the antiviral drug Avigan showed the drug could shorten the time it takes to rehabilitate patients with mild COVID-19 symptoms.

(Hideyuki Sano, translated by Elizaveta Zhuravleva. Editor Anna Kozlova)

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