Nikkei Closes Lower as Coronavirus Cases Rise

Japan’s Nikkei index closed lower on Tuesday, as rising COVID-19 cases pressured sentiment, while video-game companies slashed after Chinese media described online games as “spiritual opium”.

The Nikkei fell 0.5%, while video-game production company Nixon plunged 6.51%.

The rest of the game makers’ shares also pushed the index lower. DNA shares fell 3.88%, Konami Holdings fell 2.26%, Bandai Namco Holdings fell 1.51%, and Sony Group fell 0.91 percent.

Shares of Nintendo, which is not included in the Nikkei index, fell 1.13%.

The broader Topix index fell 0.46%.

In China, gaming companies, including Tencent, fell after state media said that many teenagers were addicted to online video games, but stocks made up for some of their losses, closing at slightly higher levels than their lows.

Chinese authorities are also struggling to control the spread of the mutated delta strain of the coronavirus from the coast of the mainland to cities within the country.

Meanwhile, Japan is facing difficulties due to the fifth wave of Corona concentrated in Tokyo, which is currently hosting the Olympic Games. New cases rose to a record high of 12,340 in the last days of July, and remained high in August, while more than eight thousand cases were recorded on Monday.