Japan Shares Closed Lower on The Sell-Off in the Technology Sector and Pandemic Fears

Japanese stocks fell today, Tuesday, affected by technology stocks that tracked Wall Street losses overnight, while stocks related to the domestic economic cycle also fell due to concerns about the deterioration of the situation regarding the pandemic in the country.

The Nikkei index fell 3.08% to 28,608.59 points, its lowest level at the close since March 24, while the broader Topix index lost 2.37% to 1,905.92 points. Both posted the biggest falls since February 26, and the Nikkei closed below the 100-day moving average.

Wall Street closed lower on Monday, as inflation concerns prompted investors to shy away from market-leading growth-related stocks, in favor of cycle-related stocks.

Negative sentiment has been exacerbated by the prolonged pandemic, in light of calls for an expansion of the state of emergency covering major prefectures such as Tokyo and Osaka.

Kyodo News reported that some provincial governors have called for stronger emergency measures across the country.

Leading technology shares fell, with SoftBank tumbling 6.51%. Panasonic shares lost 5.8% after their earnings fell below expectations.