Tokyo stocks fell back Tuesday, pressured by profit-taking and concerns over the novel coronavirus situation in the United States.
The 225-issue Nikkei average of the Tokyo Stock Exchange shed 197.73 points, or 0.87 percent, to end at 22,587.01. On Monday, the key index surged 493.93 points.
The Topix index of all TSE first section issues gave up 7.87 points, or 0.50 percent, to end at 1,565.15, following a 37.82-point jump the previous day.
Market players moved to lock in profits from the outset, after the Nikkei marked its highest finish in about one month the day before.
The Tokyo market was also weighed down by fears over a delay in the recovery of the U.S. economy, after California Gov. Gavin Newsom on Monday again ordered the closure of bars, movie theaters and other establishments within the U.S. state in response to spikes in the number of coronavirus cases, brokers said.
Discouraged by drops in Chinese stocks, both the Nikkei and Topix indexes fluctuated deeper in negative territory in the afternoon.
Brokers also attributed the Tokyo market’s weak performance to falls in high-tech stocks, including semiconductor-related issues, in the wake of a tumble of the tech-heavy Nasdaq composite index in the U.S. market Monday.
Pointing to U.S. Secretary of State Mike Pompeo’s criticism in a statement Monday that China’s maritime claims in the South China Sea are “completely unlawful,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., said, “Investors were concerned about a possible further escalation in U.S.-China tensions.”
Falling issues outnumbered rising ones 1,263 to 814 in the TSE’s first section, while 94 issues were unchanged. Volume decreased to 1.096 billion shares from Monday’s 1.215 billion shares.
Advantest Corp., Tokyo Electron and other chip-related issues were hit by selling.
Technology and entertainment giant Sony Corp., electronic parts maker TDK Corp. and other export-oriented issues also met with selling, against the backdrop of uncertainties over a U.S. economic turnaround.
Other major losers also included job information service firm Recruit Holdings Co. and drugmaker Chugai Pharmaceutical Co.
On the other hand, Can Do Co. skyrocketed by 10.59 percent, in response to the ¥100 shop operator’s upward revisions to its earnings estimates for the period between December 2019 and May this year and to its business outlook for the year until November.
Among other major winners were realtor Mitsui Fudosan Co. and Sumitomo Metal Mining Co.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 140 points to end at 22,570.