TOKYO, July 8 (Reuters) - Japanese shares fell on Thursday,
as the country's plan to reintroduce a state of emergency to
contain a resurgence of COVID-19 infections stoked worries about
an economic slowdown.
The Nikkei share average slipped 0.47% to 28,234.09
by 0209 GMT, while the broader Topix was down 0.20% to
Japan is set to declare its fourth state of emergency for
Tokyo that will run through its hosting of the Olympics, a key
minister said, as organisers consider banning all spectators
from the Games.
The Tokyo area is currently under slightly less strict
"quasi emergency" curbs. Under the heightened restrictions,
restaurants will be asked to stop serving alcohol, economy
minister Yasutoshi Nishimura said.
"The reintroduction of state of emergency is one reason that
investors are hesitant to buy Japanese stocks," said Shigetoshi
Kamada, general manager for the research department of Tachibana
"But in the first place, foreign investors' priority on
Japan is low, because in a macro view, the pace of its growth is
lagging behind the United States and Europe. Its vaccination
rate is also lower than those countries."
Energy resources explorers and airlines
led the decline among the Tokyo bourse's 33 sectoral
Retailers also fell, with Isetan Mitsukoshi Holdings
and Marui Group down 1.95% and 1.89%,
Showa Denko slipped 1.56% after a report said the
materials maker planned to sell its underperforming lead-acid
battery operations to Japanese private equity fund Advantage
Super market operator Aeon jumped 1.97% after
saying it returned to profitability in the latest quarter with a
39 billion yen operating profit.
Daikin Industries jumped 4.3% after the Nikkei
business daily reported the air conditioner maker had developed
a refrigerant for electric vehicles that could extend their
range by up to 50%.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)