2 Minutes Read (Reuters) – TOKYO, July 15 (Reuters) – Japanese equities fell on Thursday, pulled down by investor caution ahead of earnings season and an increase in COVID-19 cases a week before the start of the Tokyo Olympics. By lunchtime, the Nikkei share average had fallen 0.9 percent to 28,343.83, while the wider Topix had fallen 0.9 percent to 1,946.37. 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 begin, so there are some position changes going place,” he added, adding that this is contributing to the equity market’s weakness. Fast Retailing Co., which owns the Uniqlo apparel brand, fell 1.3 percent before reporting financial results later on Thursday. Nikon Corp. was the biggest loser on the Nikkei, falling 5.4 percent. Hitachi’s stock fell 3% on the second day after falling from a two-decade high. Mining was the worst-performing sector on the Topix, down 2.3 percent as crude oil prices fell. [O/R} Carmakers fell 1.1 percent after the European Union proposed stricter emissions regulations that will make selling gasoline and diesel cars, including hybrids, impossible by 2035. Isuzu Motors dropped the highest, down 2.7 percent, followed by Toyota-owned truck maker Hino Motors, which dropped 2.6 percent. Nissan Motor Co. has lost 1.9 percent of its value. Toyota Motor Corp fared better, losing only 0.6 percent of its value. Uttaresh.V. did the editing./n
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