Roundup: Tokyo stocks close mixed on domestic travel hopes, virus concerns

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TOKYO, June 19 (Xinhua) -- Tokyo stocks closed mixed on Friday as sentiment was lifted by hopes for Japan's economy as domestic travel restrictions were lifted, while concerns over a second wave of coronavirus infections weighed on the market.

The 225-issue Nikkei Stock Average dropped 123.33 points, or 0.55 percent, from Thursday to close the day at 22,478.79.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 0.29 point, or 0.02 percent, to finish at 1,582.80.

Local brokers said that Japan's easing of travel restrictions across the prefectures raised further hope for the country's economic revival.

The easing of travel restrictions saw transportation-oriented issues rise, although gains were capped as the easing measures had already been factored in, market strategists also said.

"Stocks rose on news about reopening and recovery of the economy, but such gains are already factored into the market. Investors are waiting for new factors to guide the index," Takashi Hiroki, chief strategist at Monex Securities, was quoted as saying.

While buying would increase domestic travel and help boost Japan's economic activities, concerns remained that the eased travel restrictions could lead to a resurgence of coronavirus cases with the increased movement of people across the country, investment analysts said.

"Fears about a new wave of the virus will likely weaken optimism stemming from the business reopening, as there are no established treatments or vaccines for the virus," Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co., said.

Adding to the mixed market mood were continued concerns about a second wave of COVID-19 infections sweeping across the United States, and reports of a sizable cluster of new infections detected in a northern region of Germany, brokers said.

"The risk of a second wave of COVID-19 infections in major economies is preventing investors from taking up long-term positions," an equity analysts here said. "Amid a lack of fresh cues, some are staying on the fence for now."

But transportation issues in particular found favor on Japan's eased travel restrictions, with ANA Holdings Inc. climbing 1.4 percent, while Japan Airlines rose 2.1 percent. Central Japan Railway, meanwhile, added 1.1 percent by the close.

Metal-related issues came under pressure, however, as concerns over a resurgence of COVID-19 cases could lead to factories being shuttered again and businesses and social restrictions reimposed in affected countries.

As such, Mitsubishi Materials fell 3.2 percent, while Kobe steel dropped 3.3 percent.

Heavily weighted Nikkei component, Fast Retailing, operator of the Uniqlo chain of casuals clothing stores, gained 1.9 percent, provided a boost for the broader market, with semiconductor issues also adding support.

Advantest gained 2.5 percent, while Screen Holdings rose 1.2 percent. Tokyo Electron, meanwhile, surged 7.1 percent, after reporting an expected operating profit of almost 16 percent when demand for semiconductors continues to increase as more people are working from home.

By the close of play, air transportation and securities house issues led notable gainers, while iron and steel, and nonferrous metal issues comprised those that declined the most.

Issues that rose outpaced those that fell by 1,043 to 1,033 on the First Section, while 90 ended the day unchanged. On main section Friday, 1.555 billion shares changed hands, rising from Thursday's volume of 1.111 billion shares.

The turnover on the final trading day of the week came to 2.839 trillion yen (26.554 billion U.S. dollars). Enditem

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