TOKYO, July 6 (Reuters) - Japan's Nikkei ended modestly
higher on Tuesday as shares of SoftBank Group and Fast Retailing
rebounded, although worries over a potential spike in
coronavirus infections during the Olympics limited gains.
The Nikkei share average closed 0.16% higher at
28,643.21, giving up earlier gains of 0.5%. The broader Topix
gained 0.28% at 1,954.50.
Tech-startup investor SoftBank Group rose 1% and
Uniqlo clothing chain operator Fast Retailing added
0.45%, while air-conditioner maker Daikin Industries
rallied 2.6%, following sharp declines on Monday.
The Nikkei had slid more than 0.6% in the previous session
after a rise in COVID-19 cases in Tokyo over the weekend.
"It looks like there is some buying back of shares after
yesterday's sell-off," said Masahiro Ichikawa, chief market
strategist at Sumitomo Mitsui DS Asset Management.
"There will soon be a big influx of athletes and media from
around the world for the Olympics, and investors worry there
could be a spike in infections, which is capping any rise in
Japan's government is likely to decide on Thursday to extend
a state of quasi-emergency in Tokyo and three nearby prefectures
beyond an original end-date of July 11.
Industrial machinery manufacturer Hitachi Zozen was
the biggest percentage gainer on the Nikkei, rising 4.2%, while
the biggest percentage loser was packaging container maker Toyo
Seikan Group Holdings, which suffered a 4.1% decline.
Among sectors, air transport gained the most on
the Topix, adding 2.8%. Oil and coal producers were
next, up 1.8%, followed by miners, which rose 1.6%.
Shippers fell the most, down 1%, with securities
firms down 0.7%, followed by a 0.6% decline for
(Reporting by Kevin Buckland in Tokyo; Editing by Shailesh
Kuber and Amy Caren Daniel)