TOKYO, July 7 (Reuters) - Japanese shares ended lower on
Wednesday, dragged down by chip-related stocks, with worries
over a resurgence of COVID-19 infections ahead of the Tokyo
Olympics weighing on sentiment.
The Nikkei share average fell 0.96% to close at
28,366.95, while the broader Topix slipped 0.86% to
Chip-related shares tracked the Philadelphia SE
Semiconductor index lower, with Tokyo Electron
slipping 0.4%, Advantest falling 0.82% and Shin-Etsu
Chemical dropping 3.27%.
"It is still hard to find positive news to lift Japanese
shares as the pace for vaccine rollouts is taking a pause and
the number of coronavirus infections in Tokyo is on the rise,
and we have the Olympics amid the pandemic," said Shoichi
Arisawa, general manager of the investment research department
at IwaiCosmo Securities.
The government is floating proposals that would ban fans
from all events at this month's Olympics which is set to start
later this month, local media reported, as officials scramble to
address public concerns about the spread of the coronavirus.
Arisawa added that the Dow's weak finish overnight
also pressuring Japanese stocks.
Other local heavyweight stocks also declined.
Fast Retailing, known for its Uniqlo brand clothing
stores, also dragged on the Nikkei by falling 1.11%.
Technology start-up investor SoftBank Group fell
0.62% as Didi Global, which it backs, fell as much as
25% in early U.S. trading on Tuesday after Chinese regulators
ordered Didi's app be taken down.
All but the precision instrument maker sector of
the 33 sector sub-indexes on the Tokyo exchange fell, with oil
developers and natural resources firms
Bank shares fell as U.S Treasury yields declined, with
Mitsubishi UFJ Financial Group falling 1.99%, Mizuho
Financial Group losing 1.89% and Sumitomo Mitsui
Financial Group falling 1.83%.
(Reporting by Junko Fujita; Editing by Amy Caren Daniel and