Japan Shares Closed Lower as Sentiment Weighed by the Pandemic Restrictions

Japanese stocks closed lower on Wednesday, tracking down on Wall Street last night, while stocks of companies linked to the economic cycle fell, as investor sentiment was affected by fears stemming from the country’s economic downturn as a result of the pandemic.

The Nikkei index fell 1.28% to close at 28044.45 points, while the broader Topix index lost 0.66% to record 1,895.24 points.

A jump in Covid-19 injuries has caused panic in Japan, amid a shortage of medical staff and hospital beds, prompting a large medical institution to call for the cancellation of the Tokyo Olympics, scheduled for July.

And hit stocks related to the economic cycle, such as the machinery and paper sectors, and recorded the largest losses among 33 sub-indices on the main stock exchange.