TOKYO, Jan 5 (Reuters) – Japanese shares slid on Tuesday as the 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 curbed investors\u2019 risk appetite.<\/p>\n
Nikkei share average dipped 0.37% to 27,158.63, while the broader Topix ticked down 0.19% to 1,791.22, both indexes marking their third straight session of 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 1.5% 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 2%.<\/p>\n
Carmakers fell 1.2% as the yen\u2019s gains against the U.S. dollar could chip away their profit from exports.<\/p>\n
The yen strengthened to 102.715 per dollar on Monday, its highest in nearly 10 months.<\/p>\n
On the other hand, many technology shares maintained their firmness as the COVID-19 pandemic worsened in many countries.<\/p>\n
Sony rose 1.3% to reach a 20-year high while Tokyo Electron surged 2.6% to a record high. Internet firm Z Holdings gained 3.5%.<\/p>\n
The Bank of Japan on Monday reduced the size of its buying in exchange traded funds to 50 billion yen ($485.91 million), compared with about 70 billion yen in recent months. But the market already took the cut in its stride.<\/p>\n
($1 = 102.9000 yen)<\/p>\n