Tokyo stocks drop as new virus variant raises global recovery worries
The 225-issue Nikkei Stock Average ended down 278.03 points, or 1.04 percent, from Monday at 26,436.39, its lowest closing level since Nov. 30. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 27.93 points, or 1.56 percent, lower at 1,761.12.
Decliners were led by mining, marine transportation, and iron and steel issues.
The U.S. dollar hovered around the lower 103 yen range after it rose against European currencies with traders seeking a safe haven amid concerns over the new variant of the coronavirus in the region, dealers said.
Shares opened lower and extended losses toward the end of the session after a number of countries in Europe and beyond tightened their borders to travelers from Britain to prevent the spread of a new variant of the coronavirus.
«The Nikkei had risen so far as if the world has overcome the coronavirus with vaccine developments, but the spread of a new highly infectious virus on the European continent made investors worried that the pandemic would drag on during the first half of 2021,» said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
British Prime Minister Boris Johnson has said the new strain may be up to 70 percent more transmissible than earlier versions. The new strain has already been found in Australia, Denmark, Italy, the Netherlands and South Africa, according to media reports.
On the First Section, declining issues outnumbered advancers 2,018 to 141, while 26 ended unchanged.
Toyota Motor declined 73 yen, or 0.9 percent, to 7,777 yen after the automaker said Monday it will suspend operations for the Christmas and New Year period earlier than planned at plants in Britain and France following logistical disruptions caused by the recent border closures.
Railway operators were lower on expectations fewer people will travel during the year-end and New Year holidays, with West Japan Railway losing 70 yen, or 1.4 percent, to 5,045 yen, Central Japan Railway sagging 255 yen, or 1.8 percent, to 13,590 yen and East Japan Railway dropping 136 yen, or 2.0 percent, to 6,500 yen.
Trading volume on the main section rose to 1,072.65 million shares from Monday's 1,042.10 million.