Japan Stocks Tumbled on Pandemic Fears

Japanese stocks closed lower on Friday, April 23, as tighter government restrictions to contain COVID-19 infections raised concerns about the economy’s recovery, while disappointing expectations from nedec reinforced the cautious atmosphere at the start of the corporate earnings announcements season.

The Nikkei index fell 0.57% to close at 29020.63 points, while the broader TOPIX index lost 0.39% to 1914.98. The two indices are down more than 2% each this week.

Japan, which is facing difficulties to contain a new spike in Coronavirus infections, plans to declare a “short and strong” state of emergency in Tokyo and other large cities from April 25 to May 11.

The government will require restaurants, bars and karaoke lounges that serve alcohol to close, and major sporting events to be held without an audience.

Nedec, which makes the micro-drives used in hard drives for computers and smartphones, slumped 5.12% after its annual forecast for the current fiscal year came below the median forecast of analysts.

Japanese stocks were also pressured by the weaker Wall Street performance overnight by reports that US President Joe Biden intends to nearly double the capital gains tax.

Technology stocks declined, as Tokyo Electron lost 1.45%, Fanuc fell 3.05%, and Advantest fell 1.25%.