The stock market in Japan closed lower again on Tuesday. Fears that the Japanese government will declare a state of emergency in Tokyo later this week continued to cause investor reluctance.

The second round of the Senate elections in the US state of Georgia was also awaited, where it will be determined whether the Democrats and a majority in the House of Representatives, also receive a majority in the Senate.

The leading Nikkei in Tokyo ended the day with a minus of 0.4 percent at 27,158.63 points. According to Japanese media, Japanese Prime Minister Yoshihide Suga reported at a party rally that the government would decide on Thursday to declare a state of emergency in the Japanese capital and surrounding areas due to the sharp increase in corona infections.

The airlines and railway companies were once again disposed of over fears of stricter travel restrictions. A rise in the Japanese yen also caused price pressure for automakers.

The other stock markets in the Asian region showed a mixed picture. The main index in Shanghai was 0.2 percent higher, and the Hang Seng index in Hong Kong remained almost flat. The Kospi in Seoul climbed 0.5 percent and the Australian All Ordinaries in Sydney fell a fraction.

The Chinese chipmaker SMIC fell 2.6 percent. Index compiler FTSE Russell is pulling SMIC, along with China United Network Communications and Nanjing Panda Electronics, out of its global stock market indicators at the behest of the US government.