Japanese stocks closed lower for the fourth consecutive session, as concerns about the spread of the highly contagious delta strain and the 2020 Tokyo Olympics exacerbating the health crisis hit sentiment.

The Nikkei index fell 1.25% to 27652.74 points, down from a major support level for its 200-day average movement of 27672 points for the first time since early last year.

Semiconductor-related stocks led the decline after US technology stocks fell last week, with the Philadelphia Semiconductor Index hitting its lowest level in a month.

The broader Topix index lost 1.3 percent, with all its sub-indices declining for the 33 sectors except for the pharmaceutical sector, which is in line with the decline in stocks globally due to Growing concerns about an increase in cases of coronavirus.