TOKYO: 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 US state of Georgia also curbed investors’ risk appetite.

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.

Airlines and train operators were among worst performers in the Tokyo Stock Exchange’s 33 industry subindexes, falling 1.2% and 1.5% respectively, on the prospects of fresh curbs to contain the health crisis.

Tokyo Disney Resort operator Oriental Land dropped 2%.

Carmakers fell 1.2% as the yen’s gains against the US dollar could chip away their profit from exports.

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%.

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.