Japan shares fall from 29-1/2-year peak on renewed virus concern

By Stanley White
TOKYO, Dec 21 (Reuters) - Japanese shares closed lower on
Monday, slipping from a 29-1/2-year high hit earlier in the
session, as concerns about a spike in domestic coronavirus cases
and the emergence of a new strain of the virus in Britain
weighed on sentiment.
The Nikkei 225 Index .N225 ended down 0.18% at 26,714.42,
after hitting its highest since April 1991 at the opening bell.
The broader Topix .TOPX also fell 0.23% to 1,789.05.
New coronavirus infections have been rising to record levels
in Tokyo and other major cities. European countries are blocking travel from Britain after a
new strain of coronavirus was identified that is up to 70% more
infectious. Faltering trade negotiations between Britain and the
European Union and a rising yen dragging down Japanese exporters
also hit sentiment.
The combination of negative factors suggests that Tokyo
shares will likely end 2020 on the back foot, after rallying 64%
from this year's lows in March.
"Some investors are worried that stocks have been
overbought, so it is tempting to book profits in reaction to
negative news about the coronavirus," said Kiyoshi Ishigane,
chief fund manager at Mitsubishi UFJ Kokusai Asset Management.
The top underperformers among the Topix 30 were Honda Motor
Co Ltd 7267.T , down 2.55%, followed by Nintendo Co Ltd
7974.T , losing 2.20%.
Top gainers were Daikin Industries Ltd 6367.T and
Mitsubishi UFJ Financial Group Inc 8306.T up 2.51% and 2.26%,
respectively.
Softbank Group 9984.T rose 1.7% after a media report that
the company's Vision Fund is preparing to raise between $500
million and $600 million via an initial public offering of its
first special purpose acquisition company. There were 75 advancers on the Nikkei index against 147
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.91 billion, compared to the average of
1.34 billion in the past 30 days.