Nikkei Falls On Coronavirus Fears And US Elections

Japanese stocks fell on Wednesday for a third consecutive session, weighed by concerns related to an increase in coronavirus cases in Europe and the United States, which could further damage the already ailing global economy.

Analysts also said that apathy dominated trading, as the US presidential elections kept many investors reluctant to form positions.

The benchmark Nikkei index fell 0.29% to close at 23,418.51 points, while the broader Topix index fell 0.31% to 1612.55 points.

27 sub-indices fell from 33 on the Tokyo Stock Exchange, and the mining, iron and steel and insurance sectors led the declines.

But the market received some support from strong earnings reports, as Shimano’s share increased 17% after the bike parts maker updated its forecast for annual operating profit.

The Japanese insurance sector index, which relies on foreign bonds for revenue, fell by more than 2.8% after the yield on US Treasury bonds fell overnight due to the dashing of hopes for a US stimulus deal.

Dai-ichi Life Holdings was down 2.7%, while T&D Holdings was down 2.8%.