Staff of Reuters Read for 2 minutes Reuters, TOKYO, July 6 – The Nikkei 225 index gained on Tuesday, supported by a rebound in Daikin Industries, Uniqlo producer Fast Retailing, and SoftBank Group shares, which had fallen sharply in the previous session. By lunchtime, the Nikkei stock average was up 0.5 percent to 28,725.81, while the broader Topix index was up 0.5 percent to 1,959.34. Daikin is up 3.7 percent, while Fast Retailing is up 0.8 percent and SoftBank is up 1.4 percent. Because of their weightings, these three stocks accounted for over three-quarters of the Nikkei’s total increase. After a weekend rise of COVID-19 infections in Tokyo, just weeks before the city hosts the Olympics, the Nikkei fell 0.6 percent on Monday, despite most other Asian stocks rising. On Thursday, Japan’s government is expected to decide to prolong a state of quasi-emergency in Tokyo and three adjacent prefectures beyond the original July 11 deadline. “After yesterday’s sell-off, it appears that there is some buying back of shares,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. Nonetheless, he noted, public opinion is wary. “With a large influx of athletes and journalists from around the world expected for the Olympics, investors are concerned about an outbreak of diseases, which is limiting any gains in Japanese markets.” The Nikkei’s greatest percentage gainer was Hitachi Zozen, which rose 4.5 percent, while the top loser was Mitsubishi Motors, which fell 3.1 percent. The Topix sector that profited the most was air transport, which increased by 3%. Mining was next, with a gain of 2.9 percent, followed by oil and coal producers with a gain of 2.7 percent. Pharma companies declined the most, down 0.4 percent, followed by securities firms, which down 0.3 percent, and shippers, which fell 0.2 percent. (Kevin Buckland in Tokyo contributed reporting; Shailesh Kuber edited the piece.)/n
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