Japanese stock losses continue … Nikkei plunges 2%


Japanese stocks extended their losses on Wednesday as investor fears about possible closures in the country’s largest cities overshadowed the possibility of reopening the economy.
The Nikkei index tumbled 2.03 percent to close at 28,508.55 points, while the broader Topix index lost 1.98 percent to 1,888.18 points. The two indices recorded the biggest drop in nearly a month.
“Global investors have no reason to buy Japanese shares because Japan is lagging behind other countries in terms of containing the virus,” said Hideyuki Ishigura of Daewoo Securities. “The sentiment worsens even more because Japan is currently planning to declare a state of emergency again.”
The NHK television station said the government was considering declaring a state of emergency in Tokyo and Osaka as the number of COVID-19 cases increased, a move that would allow authorities in the two provinces to impose restrictions in an effort to stop the spread of infections.
Steelmakers and other materials sectors were hardest hit by the Nikkei index.
Nippon Steel plunged 5.4%, JFE Holdings plunged 5.39%, and Kobe Steel lost 4.87%.
Toshiba shares fell 3.3 percent after it rejected a $ 20 billion bid from CVC Capital Partners.
Rakuten Group shares lost 5.5 percent, becoming the biggest loser on the Nikkei index, following a report that the United States and Japan would jointly monitor the e-commerce company after a unit of Tencent became a major shareholder in it.
On the other hand, shares of SoftBank Group rose 1.03 percent amid news that its $ 100 billion Vision Fund is widely expected to announce record profits next month.


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