Home Technology Nikkei sinks to one-month low on new virus variant, China tech crackdown...

Nikkei sinks to one-month low on new virus variant, China tech crackdown news

TOKYO, Nov 26 (Reuters) – Japan’s Nikkei slumped on Friday to its lowest stage in a month as a new coronavirus variant present in South Africa raised an alarm, whereas the news that Beijing has requested Chinese hailing large Didi (DIDI.N) to delist from New York additionally soured the temper.

The Nikkei common (.N225) dropped 2.53% to 28,751.62, its lowest end since Oct. 25, and posting its largest each day fall in additional than 5 months. The broader Topix (.TOPX) fell 2.01% to a six-week closing low of 1,984.98.

For the week, the Nikkei misplaced 3.3%, whereas the Topix fell 2.9%, marking the most important decline for the reason that final week of September.

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“The market’s fundamentals have been weak as traders saved promoting when the Nikkei acquired nearer to 30,000,” stated Kazuharu Konishi, head of equities at Mitsubishi UFJ Kokusai Asset administration.

“So, it simply acquired broken by damaging news, such because the one in regards to the new virus variant. Although it may be too tough to conclude that at present’s declines had been solely due to the virus.”

The variant, detected in South Africa, could have the opportunity to evade immune responses and has prompted Britain to hurriedly introduce journey restrictions on South Africa. read more

The news hit travel-related shares, which had been benefiting from a surge in home consumption due to profitable containment of the virus, the toughest.

Topix airline shares index (.IAIRL.T) dropped 5.4% to a seven-month low whereas Topix land transport index (.IRAIL.T), made up primarily of prepare operators, misplaced 2.9% to a one-year low.

ANA Holdings (9202.T) fell 4.5% after the airliner raised funds by way of a sale of convertible bonds, a transfer that highlighted the issue dealing with the business.

Among railway operators, Keisei Electric Railway (9009.T) fell 6.3% to turn out to be the worst performer within the Nikkei.

Central Japan railway (9022.T) misplaced 3.3%, whereas Western Japan Railway (9021.T) shed 3.2%.

Softbank Group (9984.T) tumbled 5.2% after Bloomberg reported Chinese regulators have requested high executives of trip hailing large Didi Global to devise a plan to delist from the New York Stock Exchange due to issues about knowledge safety. read more

The Japanese conglomerate is a big investor in U.S.-listed Chinese tech corporations, together with Didi and Alibaba .

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Reporting by Junko Fujita and Hideyuki Sano; Editing by Uttaresh V and Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.

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