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Japanese shares fall on pandemic concerns, Nidec outlook

TOKYO, April 23 (Reuters) - Japanese shares closed lower on Friday, as stricter government curbs to contain COVID-19 infections raised economic recovery concerns, while a disappointing forecast from Nidec added to the cautious mood at the start of the corporate earnings season.

The Nikkei share average fell 0.57% to 29,020.63, while the broader Topix lost 0.39% to 1,914.98. Both indexes declined more than 2% for the week.

“The market sentiment has gotten weaker since reports on the virus emergency measures started floating this week,” said Koichi Kurose, chief strategist, Resona Asset Management.

“And now, after Nidec disappointed investors, they want to confirm the corporate outlook trend before making bets.”

Japan, which is struggling to contain a resurgence of coronavirus infections, plans to declare “short and powerful” states of emergency for Tokyo and other big cities from April 25 to May 11.

The government will require restaurants, bars, and karaoke parlours serving alcohol to close, and big sporting events to be held without spectators.

Nidec, a maker of precision motors used in computer hard drives and smartphones, tumbled 5.12% after its annual forecast for the current business year missed analysts’ consensus.

Japanese shares were also weighed down by a weaker Wall Street finish overnight on reports that U.S. President Joe Biden planned to almost double the capital gains tax.

Tech firms fell, with Tokyo Electron losing 1.45%, Fanuc falling 3.05% and Advantest shedding 1.25%.

Pandemic-hit shares rose the most on index, with ANA Holdings up 3.38%, followed by Odakyu Electric Railway , gaining 2.66%, and Central Japan Railway Co, up by 2.53%.

There were 79 advancers on the Nikkei index against 139 decliners. (Reporting by Junko Fujita; editing by Uttaresh.V and Subhranshu Sahu)

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