Japan shares hit near 3-week low on fears of second coronavirus wave

TOKYO, June 15 (Reuters) - Japanese shares slipped to near
three-week low on Monday as concerns about a spike in new cases
of COVID-19 worldwide poured cold water on hopes of a quick
recovery from a coronavirus-driven global recession.
The benchmark Nikkei average dropped plunged 3.47%
to 21,530.95 .N225 , its lowest since May 27, slipping below a
key support of the 200-day moving average, which stood at
21,755.
As new coronavirus cases resurfaced in China and the United
States, worries about a second wave have deepened, prompting
fears about prolonged damage to the economy. "U.S. shares had become very expensive, reaching levels
above which further gains cannot be justified. And if U.S.
shares won't rise, Japanese shares will have no choice but to
pause," said Hiroki Takashi, chief strategist at Monex
Securities.
On the Nikkei index, there were 5 advancers against 219
decliners, with cyclical shares leading the losses.
Airlines .IAIRL.T , one of the hardest-hit victims of the
pandemic, lost 4.96% as concerns about the virus reared their
head.
Shippers .ISHIP.T dropped 3.71% and real estate
.IRLTY.T , the biggest decliner among the Tokyo Stock
Exchange's 33 industry subindexes, lost 5.06%.
Semi-conductor-related shares were also lower, with chip
equipment manufacturer Advantest 6857.T dropping 6.96%, Tokyo
Electron 8035.T losing 5.55% and Screen Holdings 7735.T
shedding 7.0%.
Sapporo Holdings 2501.T lost 5.76 % after Nomura cut its
rating on the beverage firm and lowered the target price, citing
the impact of the pandemic.
The broader Topix .TOPX lost 2.54% to 1537.89.
The market showed muted response to a barrage of Chinese
economic data that was slightly weaker than expected.
China's industrial output rose for a second straight month
in May but the gain was smaller than expected, suggesting the
economy was still struggling to get back on track after the
virus crisis.