Japan Nikkei extends losses on fresh Covid-19 concerns

Japan shares declined for second consecutive session on Tuesday, 22 December 2020, as investors sentiment dampened by concerns that the outbreak of an ominous new strain of COVID-19 in Britain could impact the recovery of the global economic recovery. The market was also weighed down by rising concerns over domestic virus infections as Tokyo Governor Yuriko Koike urged the capital's 14 million residents to stay at home during the upcoming holiday season.

At closing bell, the 225-issue Nikkei Stock Average stumbled 278.03 points, or 1.04%, to 26,436.39. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 27.93 points, or 1.56%, to 1,761.12.

The Tokyo market grappled by risk-off environment after news that the E.U. was banning United Kingdom flights to Europe due to fears about a new strain of coronavirus, said to be up to 70% more transmissible than the original. A more-virulent strain of the coronavirus in Britain sparked fears of fresh disruptions and weighed on investors' expectations of a vaccine-led economic rebound.

Fujifilm Holdings tumbled 6% after the Japanese Health Ministry said its medical review board concluded that clinical trial data to determine the efficacy of the firm's COVID-19 drug candidate Avigan was inconclusive.

CURRENCY NEWS: The Japanese yen traded at 103.39 per dollar, after strengthening from levels above 103.6 against the greenback yesterday.

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