Nikkei Follows Global Gains But Virus Fears Undermine Sentiment

Japanese shares closed higher on Monday, tracking gains in global stock markets thanks to positive corporate results, but the gains were curbed by concerns about global Covid-19 cases that could weaken the country’s economic recovery further.

The Nikkei rose 1.77% in early trading after a four-day weekend that saw the opening of the Olympic Games, but gave up part of its gains to close 1.04% higher at 27833.29 points.

The broader Topix index closed up 1.11% to 1925.62 and had increased 1.74% earlier in the session. During the long weekend, the three major US indices closed at record levels.