TOKYO, Jan 5 (Reuters) – Japanese shares edged down on Tuesday as the local government looks set to declare a state of emergency to deal with rising COVID-19 infections while uncertainty about Senate runoffs in the U.S. state of Georgia also dented investors\u2019 risk appetite.<\/p>\n
Nikkei share average dipped 0.10% to 27,232.38 while the broader Topix ticked down 0.05% to 1,793.66, though both indexes reclaimed much of early losses.<\/p>\n
\u201cThere is little reason to buy hastily today ahead of the runoff in Georgia,\u201d said Yuya Fukue, trader at Rheos Capital Works.<\/p>\n
The elections will determine who will control the Senate, and thereby how much U.S. President-elect Joe Biden can push through Democrats\u2019 agenda, including rewriting the tax code, boosting stimulus and infrastructure spending.<\/p>\n
Airlines and train operators were among worst performers in the Tokyo Stock Exchange\u2019s 33 industry subindexes, falling 1.2% and 1% respectively, on the prospects of fresh curbs to contain the health crisis.<\/p>\n
Local media reported earlier in the day that Japanese Prime Minister Yoshihide Suga told a ruling party meeting a state of emergency declaration for Tokyo and the surrounding area would be decided on Thursday.<\/p>\n
Tokyo Disney Resort operator Oriental Land dropped 1.43%.<\/p>\n
Carmakers fell 1.1% as the yen\u2019s gains against the U.S. dollar could chip away their profit from exports.<\/p>\n
Hino Motors fell 2.9% while Nissan Motor dropped 2.2% and Subaru shed 1.6%.<\/p>\n
The yen hit a near-10-month high of 102.715 per dollar on Monday.<\/p>\n
On the other hand, many momentum shares, or those that have performed well in recent months, continued to rally.<\/p>\n
Tokyo Electron rose 2.4% while Murata Manufacturing gained 2.1% and Sysmex gained 0.6%.<\/p>\n