Nikkei Down From a Multi-Decade High on Concerns About Vaccine Supplies

The Japanese Nikkei index closed lower today, Friday, to retreat from near its highest level in 29 and a half years, as the risk appetite was negatively affected after the US drugmaker Pfizer said it had lowered the goal of distributing its anti-virus vaccine.

The Nikkei index fell 0.22% to 26,751.24 points, but it posted gains for the fifth week in a row. In the previous session, the benchmark index closed near its highest level since April 1991.

The broader Topix index closed nearly flat at 1775.94.

The market followed the impact of the US Standard & Poor’s 500 Index, which retreated from an all-time high on Thursday after Pfizer indicated challenges in the supply chain of raw materials used in its vaccine.

Among the declining stocks, Tokyo Electron fell 3.12% due to profit-taking selling after technology shares surged ahead of the rest of the market in recent times.

Shares of export-dependent companies were hit by the yen’s appreciation against the dollar. Fanuc was down 0.82% while Sony lost more than 0.2% before closing nearly flat.

Shares associated with auto companies advanced after local media reported that Japan may ban the sale of new cars with gasoline engines by the mid-1930s.

The moves come after Japanese Prime Minister Suga pledged that Japan will reduce carbon emissions to zero on a net basis by 2050.