Japan stocks slip from 29-1/2-year high on virus spike, new strain in Britain

By Stanley White
TOKYO, Dec 21 (Reuters) - Japanese shares fell from a
29-1/2-year high hit earlier in the session on Monday, as
concerns about a spike in domestic coronavirus infections and
the emergence of a new strain of the virus in Britain weighed on
sentiment for riskier assets.
The Nikkei 225 Index .N225 fell 0.64% to 26,592.82 by 0212
GMT. At the opening bell, the benchmark rose to its highest
level since April 1991 but quickly erased those gains and headed
lower.
The broader Topix .TOPX also fell 0.67% to 1,781.20.
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. Sentiment also took a hit due to faltering trade
negotiations between Britain and the European Union, while some
analysts pointed to a rising yen as a reason to sell shares in
Japanese exporters.
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 underperformers among the Topix 30 were Fanuc Corp
6954.T down 2.40%, followed by Honda Motor Co Ltd 7267.T
losing 2.33%.
The top gainers on the Topix 30 index were Daikin Industries
Ltd 6367.T , up 2.23 %, followed by Mitsubishi UFJ Financial
Group Inc 8306.T , gaining 1.52%.
There were 39 advancers on the Nikkei index against 182
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.5 billion, compared to the average of
1.34 billion in the past 30 days.