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Staff of Reuters Read for 2 minutes (Reuters) – TOKYO, July 9 (Reuters) – On Friday, Japanese stocks sank to a near eight-week low on fears of a sluggish economic recovery following the country’s declaration of a COVID-19 emergency, but losses were pared on optimism that the Bank of Japan will intervene to bolster the market. After falling as much as 2.48 percent earlier in the session, the Nikkei stock average lost 0.63 percent to settle at 27,940.42. The index fell below 28,000 for the first time since May 17 after losing 2.9 percent this week. The Topix index as a whole fell 0.41 percent to 1,912.38. Japan imposed emergency measures in Tokyo on Thursday, which will last for the duration of the Olympics, forcing the organizers to hold the event without spectators. “Investors are apprehensive about whether Japan’s fourth emergency measures will work… economies in other countries are reopening, but Tokyo remains in emergency mode, with the Olympics to be held without spectators,” said Takatoshi Itoshima, strategist at Pictet Asset Management. Machinery manufacturers led the way down with a 1.31 percent drop, followed by rubber product manufacturers with a 1.02 percent drop. After losing as much as 5.5 percent, restaurant operator Global-Dining gained 0.62 percent after its president claimed he was “shocked” by comments from a government minister that he would ask banks to put pressure on eateries that don’t follow stronger coronavirus procedures. On Thursday, Economy Minister Yasutoshi Nishimura said he would seek banks to disclose information on restaurants that refuse to comply with anti-COVID-19 restrictions. Global-Dining filed a complaint against the Tokyo government earlier this year, alleging that the government’s order to close restaurants was unconstitutional and not based on scientific data. Eisai rose 2.05 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. (Junko Fujita contributed reporting; Amy Caren Daniel and Shailesh Kuber edited the piece.)/nRead More

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