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Staff of Reuters Read for 2 minutes (Reuters) – TOKYO, July 9 (Reuters) – Concerns about a faltering economic recovery prompted Japan to declare a fourth state of emergency to combat the rise of COVID-19 infections. Japanese stocks slumped on Friday, and are on course to register their worst weekly drop in nearly a year. By 0215 GMT, the Nikkei share average had fallen 2.24 percent to 27,488.25, marking the first time since June 21 that it had fallen below the 28,000 mark. The Topix index as a whole fell 1.92 percent to 1,883.38. This week, the Nikkei has dropped 4.5 percent, its worst weekly drop since July 31. Japan enacted emergency measures on Thursday that would last for the duration of the Olympics, requiring organizers to hold the games without spectators. “Investors are apprehensive about whether Japan’s fourth emergency measures will work… economies in other countries are reopening, while Tokyo is still under emergency measures, with the Olympics to be held without fans,” Takatoshi Itoshima, strategist at Pictet Asset Management, said. In a broad sell-off overnight, Wall Street indexes fell down from record closing highs, further pressuring markets. Shares slumped across the board in Japan, with shippers leading the way with a 4.4 percent decrease. Global-Dining, a restaurant operator, fell 3.29 percent as the government plans to impose stiffer penalties on eateries that do not comply with the government’s decision to reduce business hours. The corporation launched a lawsuit against the Tokyo government earlier this year, arguing that the government’s order to close restaurants was illegal and not based on scientific data. Eisai gained 0.57 percent after its partner Biogen announced that the US Food and Medicine Administration has reduced the use of its Alzheimer’s drug, following harsh criticism of the agency’s initial approval. Nidec, which plummeted 4.32 percent, and Daikin Industries, which fell 4.28 percent, were the only stocks on the top 30 core Topix names that fell. Junko Fujita contributed reporting, and Amy Caren edited the piece. Daniel/nRead More

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