TOKYO, Aug 3 (Reuters) - Japan’s Nikkei index closed lower on Tuesday as rising cases of COVID-19 weighed on sentiment, while video game makers fell after Chinese media labelled online gaming as “spiritual opium.” The Nikkei share average slid 0.5%, with online game producer Nexon’s dropping 6.51%. Other game makers also dragged the index. DeNA fell 3.88%, Konami Holdings dropped 2.26%, Bandai Namco Holdings sank 1.51% and Sony Group slipped 0.91%. Nintendo, which isn’t a part of the Nikkei 225, retreated 1.13%. The broader Topix sank 0.46%. Amid worsening investor sentiment, “any uptick in prices is likely to trigger selling,” said Koichi Nosaka, a market analyst at Securities Japan, Inc. In China, gaming companies including Tencent Holdings declined after state media said many teenagers are addicted to online games, but shares recouped some losses to close off lows. Chinese authorities are also struggling to control the spread of the Delta coronavirus variant from the mainland’s coast to inland cities. Meanwhile, Japan is grappling with its own fifth wave, centred on Tokyo — currently the host of the Olympics. New cases surged to a record 12,340 on the last day of July, and remained elevated in August, with more than 8,000 infections on Monday. “It’s hard to buy domestic-demand-related stocks now,” said Naito Securities analyst Yoshihiko Tabei. Airlines dropped 2.28%, making them the worst performers among Topix subsectors after paper and pulp’s 3.51% slide. The biggest losers on the Topix were those who reported disappointing earnings, with auto parts supplier GMB down 15.99%, Edulab down 15.71% and Systemsoft down 14.77%. The biggest winner was M&A adviser GCA, which surged the daily limit of 28.54% after U.S. boutique investment bank Houlihan Lokey launched a tender offer to acquire the Japanese company. Elswhere, T.RAD leapt 17.24% and E-Guardian surged 14.62% after posting their financial results. (Reporting by Tokyo markets team; editing by Uttaresh.V) Our Standards: The Thomson Reuters Trust Principles.