TOKYO – The Japan capital’s stocks closed lower on Monday as investors weigh rising coronavirus infections against the positive effects of new US and Japanese stimulus packages.
The benchmark Nikkei 225 index fell 0.18%, or 48.97 points, to 26,714.42, while the broader Topix index was down 0.23%, or 4.19 points, at 1,789.05.
Shortly before the Tokyo market opened, US lawmakers reached a deal for a nearly $900-billion (RM3.64 trillion) Covid-19 relief package for millions of Americans as the nation struggles with the world’s largest outbreak of the virus.
At home, Japan’s government approved a record ¥106.6-trillion (RM4.17 trillion) budget for the next fiscal year, including measures to mitigate the economic impact of the pandemic.
The US deal is “prompting purchases, but concerns over a rise in new coronavirus infections at home and abroad are weighing on the market”, Mizuho Securities said.
Other analysts agree that the trade lacks a clear sense of direction, with investors caught between optimism and pessimism.
“The Nikkei is facing the ¥27,000 barrier,” said Yoshihiro Okumura of Chibagin Asset Management.
“The market needs fresh, positive factors to break it,” Okumura told AFP.
The US dollar fetched ¥103.45 in Asian afternoon trade, against ¥103.28 in New York late Friday.
In Tokyo, Nissan dropped 3.43% to ¥562.6 and Toyota was down 0.77% at ¥7,850.
Nintendo slumped 2.20% to ¥65,250 but Sony gained 1.46% at ¥10,405 yen. – AFP, December 21, 2020
