The Nikkei closed at its lowest level in a week on Chinese growth concerns

Japan’s Nikkei closed at its lowest level in a week on Tuesday, as COVID-19 protests in several Chinese cities raised concerns about economic growth.

The Nikkei fell 0.48 percent to close at 28,027.84, the lowest level since November 21, while the broader Topix index lost 0.57 percent to 1,992.97.

US stocks closed sharply lower Monday night after protests in major Chinese cities denouncing tough COVID-19 policies raised concerns about economic growth.

“The Japanese market’s decline is all due to the China issue,” said Shoji Hosui, chief strategist at Daiwa Securities. “Continuous protests could lead to a slowdown in global economic growth.”

Pharmaceutical maker Esai plunged 6.22 percent and represented the biggest pressure on the Nikkei index, after a woman died during a trial of the company’s Alzheimer’s drug.

Honda Motor also fell 1.55 percent after the automaker said its Wuhan plant was still idle due to Covid restrictions.

SoftBank Group fell 1.37 percent, while chipmaking equipment maker Tokyo Electron fell 1.08 percent.

In contrast, supermarket operators Takashimaya rose 3.66 percent and Isetan Mitsukoshi Holdings rose 3.32 percent.

Shares of oil exploration companies rose 1.89 percent, and were the biggest gainers among the 33 industry sub-index on the Tokyo Stock Exchange. The airlines sector rose 0.86 percent.