Nikkei Down With Sentiment Hit by Rising Covid-19 Cases in Europe

The Nikkei index fell in the Tokyo Stock Exchange today, Friday, as new restrictions to combat the Coronavirus in Europe weakened hopes for a rapid global economic recovery, but losses were limited after Fast Retail expected positive annual profits.

The Nikkei index fell 0.41% to 23,410.63 points. The broader TOPIX index lost 0.86% to 1617.69 points.

For the week, the benchmark index fell 0.89%, the TOPIX slipped 1.8%, while the latter recorded the largest drop in more than two months.

All of the 33 sub-sector indices on the Tokyo Stock Exchange, with the exception of two, declined, while the real estate, pharmaceutical industry and road transport sectors led the decline in the main bourse.

The sentiment was negatively affected after restrictions were imposed to slow the spread of the Coronavirus in Europe, with London entering stricter general isolation measures and France imposing a night-time curfew in large cities to curb a jump in cases of COVID-19.

Some investors have also remained reluctant to take up positions due to the uncertainty surrounding the US stimulus talks, ahead of the US presidential elections and local corporate earnings reports.

But Nikkei was supported by gains in heavyweights Fast retailer, which jumped more than 4.4% after the clothing store chain operator posted profits that exceeded expectations.

Fujifilm Holdings also jumped 2.5% after the company said it had applied in Japan for approval to use the anti-influenza drug Avigan as a treatment for Covid-19 disease.