TOKYO, July 9 (Reuters) - Japanese shares fell on Friday,
and are on track to post their worst weekly drop in nearly a
year, on worries about a slowing economic recovery after Japan
declared a fourth state of emergency to counter the resurgence
of COVID-19 infections.
The Nikkei share average fell 2.24% to 27,488.25 by
0215 GMT, falling below the 28,000 mark for the first time since
June 21. The broader Topix dropped 1.92% to 1,883.38.
The Nikkei has lost 4.5% this week, its biggest weekly
decline since July 31.
Japan on Thursday declared emergency measures that will run
throughout the Olympics, forcing the organisers to hold the
Games without spectators.
"Investors are concerned whether Japan's fourth emergency
measures would really work... economies in other countries are
reopening but Tokyo is still under the emergency measures, with
the Olympics to be hosted without fans" said Takatoshi Itoshima,
strategist at Pictet Asset Management.
Also pressuring markets, Wall Street indexes pulled back
from record closing highs overnight in a broad sell-off.
In Japan, shares fell across the sectors, with shippers
leading declines with a 4.4% drop.
Restaurant operator Global-Dining lost 3.29% as the
government is planning to take stricter measures against
eateries that do not comply with the order to shorten business
The company earlier this year had filed a lawsuit against
the Tokyo government claiming its order to close restaurants was
illegal and not based on scientific evidence.
Eisai edged up 0.57% as its partner Biogen
said the U.S. Food and Drug Administration has narrowed use of
its Alzheimer's drug, after the agency drew sharp criticism for
its initial approval of the drug.
All the stocks on the top 30 core Topix names fell, dragged
down by Nidec, which fell 4.32%, and Daikin Industries
, which lost 4.28%.
(Reporting by Junko Fujita; Editing by Amy Caren Daniel)