Tokyo's benchmark Nikkei index lost more than two percent on Monday following a rout on United States markets as fears grow over a resurgence of coronavirus infections.
The Nikkei 225 dropped 2.30 percent, or 517.04 points, to end at 21,995.04 – its first close below the 22,000 level since June 15th. The broader Topix index fell 1.78 percent, or 28.15 points, to 1,549.22.
“The Nikkei index fell following sharp losses on US shares over fears of the spread of new coronavirus infections,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
The Dow Jones Industrial Average plunged 2.8 percent on Friday as surging coronavirus cases prompted large US states to impose new public health restrictions.
Ito added that there is also “a concern about a second wave in Tokyo as the number of new cases surpassed 50 for three days.”
Investors are also eyeing a series of US economic data this week, he said.
In Tokyo trading, SoftBank Group dropped 2.76 percent to 5,380 yen after it announced estimates it will gain 600 billion yen (US$5.6 billion) from the initial sale of T-mobile shares.
Last week, the investment giant said it will sell the US firm shares worth over $21 billion as it sheds assets to shore up its financial health.
Uniqlo casual wear operator Fast Retailing fell 2.35 percent to 60,640 yen while Sony shed 2.73 percent to 7,313 yen.
Nissan tumbled 3.40 percent to 394.7 yen and Toyota 1.58 percent to 6,759 yen.
The dollar fetched 107.13 yen in Asian trade, against 107.22 yen in New York.
