This file photo shows the Tokyo Stock Exchange on Oct. 2, 2020. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks fell Tuesday, with the benchmark Nikkei extending its losing streak to a fourth day, as sentiment was hurt by deepening concerns over an economic recovery as Japan struggles to contain a resurgence of COVID-19 infections.
The 225-issue Nikkei Stock Average ended down 98.72 points, or 0.36 percent, from Monday at 27,424.47. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 9.35 points, or 0.49 percent, lower at 1,915.63.
Decliners were led by air transportation, iron and steel, and oil and coal product issues.
The U.S. dollar was under pressure in the lower 109 yen range on expectations of a narrower interest rate gap between the United States and Japan following an overnight drop in U.S. Treasury yields, dealers said.
At 5 p.m., the dollar fetched 109.32-33 yen compared with 109.21-31 yen in New York and 109.40-42 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1772-1773 and 128.69-73 yen against $1.1770-1780 and 128.62-72 yen in New York and $1.1780-1781 and 128.88-92 yen in Tokyo late Monday afternoon.
The 10-year Japanese government bond yield dipped 0.005 percentage point from Monday's close to 0.005 percent, as risk-averse investors bought the safe-haven debt following declines in Tokyo stocks and an ongoing surge of coronavirus cases in the country. Bond yields move inversely to prices.
Stocks opened higher after the Dow Jones Industrial Average rose to a fresh record on Monday, but they moved into negative territory as investors shifted focus to Japan's struggle to contain an alarming rise in COVID-19 infections.
Sentiment deteriorated on concerns Japan's economic recovery will be delayed amid a surge in cases, with trust in the government falling as its countermeasures so far seem to have had limited effect on containing the resurgence, brokers said.
The planned expansion of the state emergency to new areas is also weighing on the market, as the government is set to add seven more prefectures and extend the emergency in Tokyo and five prefectures through Sept. 12, brokers said.
"A number of negative factors including losses for Asian counterparts and a fall in stock futures pulled the market down further," said Seiichi Suzuki, chief equity market analyst at the Tokai Tokyo Research Institute.
Air transportation issues and department stores slumped on fears the surge in infections and the imminent expansion of the state of emergency will restrict people's movement, brokers said.
ANA Holdings fell 53.0 yen, or 2.1 percent, to 2,522.5 yen, while Isetan Mitsukoshi slipped 11 yen, or 1.5 percent, to 725 yen. Takashimaya was down 16 yen, or 1.4 percent, at 1,101 yen.
On the First Section, declining issues outnumbered advancers 1,478 to 613, while 96 ended unchanged.
Tokyo Electron ended 330 yen, or 0.7 percent, lower at 44,600 yen, as investors sold its shares following earlier gains on upbeat earnings and an upwardly revised outlook released Monday, brokers said.
Trading volume on the main section fell to 954.19 million shares from Monday's 1,036.55 million shares.
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