Japan Shares Plunge to 8-Week Lows on Fears of Slowing Growth

Japanese stocks plunged to an almost 8-week low on Friday, July 9, on fears of a slowing economic recovery after the country declared a state of emergency to curb the outbreak of the Coronavirus, but losses were curbed by hopes that the Bank of Japan might intervene to support the market.

The Nikkei index fell by 0.63% to close at 27940.42 points, after losing as much as 2.48% earlier in the session. The index, which fell 2.9% this week, closed below the 28 thousand points level for the first time since May 17.

The broader Topix index fell 0.41% to 1912.38 points.

Japan declared a state of emergency in Tokyo that will continue during the Olympics, forcing organizers to hold the Games without spectators.

Machinery manufacturers led the decline, as the sector index fell 1.31%, followed by rubber products manufacturers to lose 1.02%.

Economy Minister Yasutoshi Nishimura said Thursday that he will ask banks to share information about restaurants that refuse to respond to requests to follow the anti-Covid-19 restrictions.