Japanese shares end lower on tech sell-off, pandemic worries

TOKYO, May 11 (Reuters) - Japanese shares tumbled on
Tuesday, dragged down by technology stocks tracking overnight
Wall Street losses, while domestic cyclical stocks also fell on
concerns around the nation's worsening situation of the
pandemic.
The Nikkei share average .N225 tumbled 3.08% to 28,608.59,
its lowest closing level since March 24, while the broader Topix
.TOPX lost 2.37% to 1,905.92. Both marked their biggest fall
since Feb. 26, while the Nikkei closed below its 100-day moving
average.
Wall Street closed lower on Monday as inflation concerns
drove investors away from market-leading growth stocks in favour
of cyclicals. .N
The prolonged pandemic added to the negative sentiment, with
calls for expanding the state of emergency, which covers major
prefectures such as Tokyo and Osaka.
Some prefectural governors called for stronger emergency
measures to be put in place nationwide, the Kyodo news agency
reported. "Atmosphere in the market is bad," said Shoichi Arisawa,
general manager of the investment research department at
IwaiCosmo Securities.
"Even domestic cyclical shares, which should be bought on
the day like today, were being sold. Investors could not find
any reasons to buy Japanese stocks at a time when the pandemic
in Japan shows little signs for slowing down."
Leading tech shares fell, with SoftBank Group 9984.T
tumbling 6.51%.
Among hot chip-related shares, Advantest 6857.T lost 5.5%
while Sumco 3436.T shed 5.4%
Panasonic 6752.T lost 5.8% after its earnings fell short
of expectations. Mothers start-up shares index .MTHR lost 3.46% to hit its
lowest close since late August.
About 90% of shares on the Tokyo Stock Exchange's main board
declined while only 7% of them rose.
Among gainers, Shionogi & Co 4507.T inched up 1.2% after a
local media report that said the drug maker may start supplying
COVID-19 vaccines later this year. Ajinomoto 2802.T rose 3.8% after its earnings beat
analysts estimates and announced share buy-back.