TOKYO, July 9 (Reuters) - Japanese shares fell to a near
eight-week low on Friday, on worries over a slowing economic
recovery after the country declared a COVID-19 emergency, but
losses were trimmed on hopes that the Bank of Japan might have
stepped in to support the market.
The Nikkei share average fell 0.63% to close at
27,940.42, after losing as much as 2.48% earlier in the session.
The index, losing 2.9% this week, closed below the 28,000 mark
for the first time since May 17.
The broader Topix dropped 0.41% to 1,912.38.
Japan on Thursday declared emergency measures in Tokyo that
will run throughout the Olympics, forcing the organisers to hold
the Games without spectators.
"Investors are concerned whether Japan's fourth emergency
measures would really work... economies in other countries are
reopening but Tokyo is still under the emergency, with the
Olympics to be hosted without fans" said Takatoshi Itoshima,
strategist at Pictet Asset Management.
Declines were led by machinery makers, which fell
1.31%, followed by rubber product makers losing
Restaurant operator Global-Dining edged up 0.62%
after losing as much as 5.5% as its president said he was
"shocked" by comments from a government minister that he would
ask banks to pressure eateries that don't comply with stricter
Economy Minister Yasutoshi Nishimura said on Thursday he
would ask banks to share information on restaurants that refuse
to respond to requests to follow anti-COVID-19 curbs.
Global-Dining earlier this year had filed a lawsuit against
the Tokyo government claiming its order to close restaurants was
illegal and not based on scientific evidence.
Eisai gained 2.05% as its partner Biogen
said the U.S. Food and Drug Administration has narrowed use of
its Alzheimer's drug, after the agency drew sharp criticism for
its initial approval of the drug.
(Reporting by Junko Fujita; Editing by Amy Caren Daniel and