Tokyo stocks open lower on virus return fears

Tokyo stocks opened lower on Monday as fears grew over a second wave of coronavirus infections and investors awaited a set of Chinese data due later in the day.

The benchmark Nikkei 225 index was down 0.68 percent, or 152.26 points, at 22,153.22 in early trade, while the broader Topix index was down 0.51 percent, or 7.95 points, at 1,562.73.

“Concerns over a second wave of infections are growing as clusters of new infections were reported in the US and China, while the number of new cases increased in Tokyo,” Okasan Online Securities said in a commentary.

On Sunday, the Tokyo Metropolitan Government reported a surge in new infections to 47, the largest number since a state of emergency was lifted on May 25.

China also reported its highest daily number of new coronavirus cases in months on Sunday, triggering fears of a second wave of infections.

Trade was subdued also because investors were awaiting China’s factory output and retail sales data due later in the day, analysts said.

The dollar fetched 107.30 yen in early Asian trade, against 107.39 yen in New York on Friday.

In Tokyo, chip-linked shares were among the losers, with chip-testing equipment manufacturer Advantest dropping 2.55 percent to 5,740 yen and chip-making equipment manufacturer Tokyo Electron trading down 2.27 percent at 22,640 yen.

Airlines were also lower, with ANA Holdings trading down 1.23 percent at 2,640.5 yen and Japan Airlines down 1.75 percent at 2,189 yen.

On Wall Street, the Dow ended up 1.9 percent at 25,605.54. (AFP)