Japanese shares fall as domestic COVID-19 cases at 1-1/2-month high

TOKYO, June 24 (Reuters) - Japanese shares ended weaker on
Wednesday as investor sentiment turned negative in response to
Tokyo's highest daily COVID-19 cases in more than a month.
The benchmark Nikkei average .N225 closed 0.07% lower at
22,534.32, with 59 advancers against 163 decliners.
Earlier in the session, Tokyo markets tracked overnight
gains in Wall Street as improving economic data and the prospect
of more stimulus bolstered hopes of a swift recovery. .N
The pace of contraction in the U.S. manufacturing and
services sectors eased in June with reopening of businesses.
While new home sales jumped 16.6% in May, blowing past estimates
of a 2.9% rise. However, an increase in Tokyo's coronavirus infections on
Wednesday lifted the risk-averse sentiment.
The 55 fresh cases marked the highest tally since May 5,
according to public broadcaster NHK. Tokyo has said restrictions
could be reimposed if new cases went up to 50 or more.
Hideyuki Ishiguro, senior strategist at Daiwa Securities in
Tokyo, said pandemic-related worries could weigh down markets in
the short term.
"People who are sensitive to coronavirus will probably
refrain from going outside, in which case would damage
restaurant and service businesses," Ishiguro said.
The broader Topix .TOPX fell 0.42% to 1,580.50, with all
but five of Tokyo's 33 subindexes trading in the red.
Shippers .ISHIP.T and textiles .ITXTL.T were the worst
performers among the Tokyo's 33 subindexes, falling 2.61% and
1.66%, respectively.
Start-up market Mothers Index .MTHR advanced 0.86%, as
three new initial public offerings were announced for the first
time in two-and-a-half months.
Elsewhere, SoftBank Group Corp 9984.T dropped 1.84% after
the company said it will sell up to 198.3 million T-Mobile US
Inc TMUS.O shares. Investors also maintained a cautious stance ahead of the
International Monetary Fund updated report on World Economic
Outlook scheduled later in the day.