Japan shares tumble on fears of a state of emergency over COVID - 19 cases

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On Wednesday - Toyota Motor dropped shares as concerns about the upbeat spread of Delta Coronavirus variant kept investors on edge while Japanese shares succumbed to profit taking after prompt earnings.

The average Nikkei share average plunged 0.21% to 27,584. 08, while the broader Topix dropped 0.50% to 1,921. 43

Concerns about imminent COVID - 19 cases are mounting as the head of the Japan Medical Association called for a nationwide state of emergency.

Toyota Motor gave up 0.9% after the automaker reported a record monthly operating profit but maintained its annual guidance.

Toyota, which was gain more than 25% so far this year, followed other Japanese companies that fell even after reporting strong earnings as investors had already high expectations.

It is not that there is enormous selling. But no one is buying. Even when a company announces strong earnings, that certainly pleases its existing investors and there's no additional buyers, said Takenori Yamamoto, a portfolio manager at Norinchukin Zenkyoren Asset.

He expects more buying late in August when the government will likely focus on an economic stimulus ahead of an election that must be held by November.

However, upbeat earnings did boost some other firms.

Nippon Steel gained 3.1% after the country's top steelmaker bumped up its net profit estimate for the current year by more than 50%, well above analysts' forecasts.

Nippon Yusen leapped 5.5% after the shippingpan recorded a bumper quarterly profit and boosted its annual outlook.

Daikin rose 6.1% after the manufacturer of air conditioners posted stronger-than - expected profit growth.

Z Holdings gained 9.8% after the telecom firm reported brisk growth in quarterly profit.

On the other hand, Nichirei Corp dropped 12.3% after the frozen food product firm, which benefited from the pandemic-induced demand boost, reported surprisingly weak quarterly profits.

Game companies continued to feel the pinch after a Spiritual State Media Article described online games as Chinese opium.

Koei Tecmo dropped 0.1% and Nexon was 1.0%.