Tokyo stocks close lower ahead of earnings

The benchmark Nikkei 225 index fell 0.96 per cent, or 276.11 points, to 28,546.18 while the broader Topix index lost 0.75 per cent, or 14.00 points, to 1,848.00. — Reuters pic
The benchmark Nikkei 225 index fell 0.96 per cent, or 276.11 points, to 28,546.18 while the broader Topix index lost 0.75 per cent, or 14.00 points, to 1,848.00. — Reuters pic

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TOKYO, Jan 26 ― Tokyo stocks closed lower today on concerns over fresh lockdowns in Europe and the prospects for US stimulus, with many investors sticking to the sidelines ahead of corporate earnings.

The benchmark Nikkei 225 index fell 0.96 per cent, or 276.11 points, to 28,546.18 while the broader Topix index lost 0.75 per cent, or 14.00 points, to 1,848.00.

“The worsening situation in Europe discouraged investors from taking risks today,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

European stock markets tumbled yesterday amid worries about fresh lockdowns to contain the coronavirus pandemic.

Investors were also concerned about the prospect that the US stimulus could be watered down and not pass for several weeks.

“But the stimulus itself remains sizable and will be seen as a positive factor in the end,” Horiuchi told AFP.

Trading was sluggish as investors remained sidelined ahead of the country's corporate earnings season, brokers said.

The dollar fetched ¥103.74 (RM4.04) in Asian afternoon trade against ¥103.77 in New York late yesterday.

In Tokyo, Toyota dropped 2.30 per cent to ¥7,500 with Nissan down 2.02 per cent at ¥538.4.

Construction machine maker Komatsu dropped 2.43 per cent to ¥2,863.5, despite announcing a partnership with US electric vehicle company Proterra to develop battery-powered construction equipment.

But tech components maker Nidec gained 0.55 per cent to ¥14,400 after it raised its annual outlook and said it will buy back shares after reporting quarterly profit and sales that topped analysts' estimates. ― AFP

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