Japanese stocks fall on fears of increased coronavirus infections

Japanese stocks fell, affected by a widespread sell-off in global stocks today, after concerns about their high valuation, the increase in new cases of coronavirus and the possibility of a slowdown in the nascent economic recovery around the world.

According to (Reuters) pressure on stocks increased due to the uncertainty over the US presidential election, as President Donald Trump declined to comment on a peaceful transfer of power if he lost in the elections that will be held on the third of November.

The benchmark Nikkei index fell 1.11 percent to 23,087.82 points, dropping from a key support level for its 25-day average at 23,217 points, and recording its lowest closing level within two weeks.

The broader Topix index fell 1.08 percent to 1,626.44 points, with cyclical stocks such as steelmakers and automobiles hardest hit.

Nippon Steel fell 4.1 percent, while rival JFE Holdings was down 6.1 percent. Among the auto stocks, Honda fell 4.2 percent, while Subaru lost 3 percent.

Elsewhere, the Sumitomo Mitsui Trust shed fell 3.1 percent on fears of reputational damage after the company made mistakes in counting votes at its shareholder meetings.

Hitachi Transport System fell 4.7%, while SG Holdings dropped 1.3% after a media report indicated the two companies had canceled their capital alliance.

Among the gainers, endoscope maker Olympus rose 1.2 percent, optical products Hoya Corp rose 1.5 percent, and Sysmex Medical Equipment rose 0.4 percent.