TOKYO, June 22 (Xinhua) -- Tokyo stocks ended essentially flat Monday as investors picked up issues oversold recently amid mounting concerns about a resurgence of COVID-19 cases in the United States.
The 225-issue Nikkei Stock Average shed 41.52 points, or 0.18 percent, from Friday to close the day at 22,437.27.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 3.71 points, or 0.23 percent, to finish at 1,579.09.
Continued concerns about rising numbers of COVID-19 cases in the United States ensured the market was in a circumspect mood Monday amid uncertain outlooks for the prospects of the global economy, local brokers said.
They highlighted the World Health Organization (WHO) on Sunday reporting the largest single-day increase in COVID-19 cases, according to its figures, with North and South America logging a significant surge in cases.
Adding to concerns about rising cases in the United States, Apple Inc. saying it would close its high street stores in 11 U.S. states amid a resurgence of COVID-19 cases sparked fears that further business closures could follow, market strategists here said.
"Investors grew wary about the risk of growing virus infections negatively affecting business activities overseas," Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co., was quoted as saying.
The yen subsequently gained ground on the U.S. dollar as investors switched out of riskier assets like stocks and into safe-haven assets like the Japanese currency.
A firm yen weighs on exporters as profits repatriated from overseas do not benefit from favorable exchange rates. Japanese companies broadly exposed to overseas markets can lose price competitiveness when the yen is firm against the U.S. dollar and other major currencies, brokers here said.
Japan lifting all travel restrictions late last week leading to an uptick in cross-prefectural travel over the weekend and raising hopes for the revitalization of regional economies, prompted investors to buy on dips, helping to offset COVID-19-related losses, technical analysts said.
"Hopes for an economic recovery in Japan after the country late last week lifted an advisory against cross-prefectural travel boosted dip-buying," Yutaka Miura, senior technical analyst at Mizuho Securities Co., noted.
Investment analysts also said, however, that lingering concerns about coronavirus cases in Japan's capital hurt sentiment to a degree, as Tokyo logged its fifth straight day Monday of cases rising beyond the 20 threshold, although the market determined the risk was in check for now.
The Tokyo metropolitan government confirmed 29 new COVID-19 cases as of Monday afternoon.
"It is not regarded as a huge risk, at least in Japanese markets, since Japan is still far from an outbreak that could lead to restrictions being imposed again," Yutaka Masushima, market analyst at Monex Securities in Tokyo was quoted as saying.
Transportation issues lost ground, as related issues were sold for gains and amid concerns of the global COVID-19 situation, with ANA Holdings losing 1.4 percent, while Japan Airlines dropped 2.0 percent.
East Japan Railway, meanwhile, ended the day 1.5 percent lower.
Toshiba Corp. marked a bright spot, however, climbing 4.9 percent after announcing plans to raise funds through its semiconductor affiliate and return a hefty portion of the net proceeds to its shareholders.
By the close of play, air and land transportation issues led notable decliners, while textile and apparel, and pharmaceutical issues comprised those that gained.
Issues that declined outpaced those that advanced by 1,150 to 913 on the First Section, while 103 ended the day unchanged.
On the main section on Monday, 936.21 million shares changed hands, dropping from Friday's volume of 1,555.93 million shares.
The turnover on the first trading day of the week came to 1.653 trillion yen (15.465 billion U.S. dollars). Enditem
