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2 Minutes Read (Reuters) – TOKYO, July 15 (Reuters) – Japanese equities closed the day lower on Thursday, as investors remained cautious ahead of earnings season and an increase in COVID-19 cases a week before the start of the Tokyo Olympics impacted on mood. The Nikkei stock average fell 1.2 percent to settle at 28,279.09, while the broader Topix index fell 1.2 percent to 1,939.61. Despite a fresh state of emergency that began on Monday and spans until Aug. 22, Tokyo recorded 1,149 new infections on Wednesday, the most since mid-January. Many people are concerned that the flood of foreign athletes and Olympic officials may result in an increase in incidents. “Infections are still on the rise, and the Olympics are right around the corner, so investors are wary,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said. “Earnings season is also about to start, so some position alterations are in the works.” Fast Retailing Co., which owns the Uniqlo apparel brand, finished 1.1 percent down. After the close, it declared a 72 percent increase in nine-month operating profit. The Nikkei’s largest loser was Nikon Corp., which fell 6.2 percent, while Hitachi extended its losses to a second session, falling 3.5 percent. Steelmakers led the way higher, with Nippon Steel and JFE Holdings both up 1.7 percent and Kobe Steel up 1.6 percent. The only Topix sector to gain ground was iron and steel, which gained roughly 1%. Mining suffered the largest losses, sliding 2.4 percent as crude oil prices fell. Carmakers fell 1.1 percent as a result of a stronger yen and after the European Union proposed harsher pollution regulations that will make selling gasoline and diesel automobiles, including hybrids, illegal by 2035. Yamaha Motor dropped the most on the Nikkei, down 2.8 percent, followed by 2.6 percent drops for Toyota-owned Hino Motors, Isuzu Motors, and Mazda Motor. Nissan Motor Co. fell 2.3 percent and Honda Motor Co. fell 1.8 percent among the so-called Big Three, while Toyota Motor Corp. did slightly better, falling 0.4 percent. Uttaresh.V and Rashmi Aich edited the piece./nRead More

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