Nikkei Closes at Its Lowest Level in More Than 6 Months on Virus Fears

The Japanese Nikkei index closed at its lowest level since the beginning of the year as investor sentiment was negatively affected by the rise in Covid-19 cases, some disappointing earnings announcements, and a decline in US stock futures.

The Nikkei fell 1.8% to close at 27,283.59 points, the largest drop since June 21 and the lowest closing level since January 6. The Nikkei fell to 27,272.49 earlier in the session.

In the month, the Nikkei fell 5.24%, in the worst performance since the market crash due to the Coronavirus pandemic in March of last year, after recording a decline for the eleventh consecutive session on the last trading day during the month.

Meanwhile, the Topix index plunged 1.37% to 1911.62, recording a monthly decrease of 2.19%.

Today, the Japanese government extended the state of emergency until August 31 in Tokyo and some other prefectures, as infections with the Coronavirus rose to a record high.