Japan shares end lower as COVID-19 cases jump in Tokyo

TOKYO, Nov 18 (Reuters) - Japanese shares closed lower on
Wednesday, with the Nikkei retreating from a more than 29-year
closing high notched a day earlier, as soaring COVID-19 cases in
Tokyo halted a recent equity rally fuelled by vaccine optimism.
The benchmark Nikkei share average .N225 dropped 1.1% to
25,728.14, its biggest daily loss since Oct. 30.
The index, which has gained nearly 12% so far this month,
posted its highest close since 1991 on Tuesday.
The broader Topix .TOPX lost 0.81% to 1,720.65.
Both of the indexes extended their losses in the afternoon
as market sentiment soured after local media reported that Tokyo
hit a new single-day record of 493 coronavirus infections on
Wednesday. Earlier in the day, the Nikkei business daily reported that
Tokyo was preparing to raise its COVID-19 alert level to the
highest of four levels. Japanese stocks also tracked Wall Street lower as surging
COVID-19 cases, the growing threat of a fresh round of economic
lockdowns and weak retail sales data dampened the euphoria
caused by potential vaccine breakthroughs. .N
All but two of the 33 sector subindexes on the Tokyo
exchange traded lower, with highly cyclical non-ferrous metals
.INFRO.T , airlines .IAIRL.T and shippers .ISHIP.T leading
the decline on the main bourse.
Analysts said a sense of short-term overheating on the
Nikkei and a stronger yen also prompted investors to book
profits, sending export-oriented companies such as Toyota Motor
Corp 7203.T , Sony Corp 6758.T and Honda Motor 7267.T
between 1.61% and 3.78% lower.
SoftBank Group Corp 9984.T inched down 0.91%, mirroring
the Nasdaq's weak performance overnight.
Separately, the company's chief executive officer, Masayoshi
Son, said at the New York Times-hosted DealBook Online Summit
that he was sitting on about $80 billion in cash for investments
and share buybacks. The Mothers Index .MTHR of start-up firm shares bucked the
overall sombre mood, closing 0.62% higher.