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Japan s Topix ends lower as COVID-19 fears outweigh gains in chip-related shares

By Reuters Staff 2 Min Read TOKYO, April 19 (Reuters) - Japan’s Topix changed course to close lower on Monday, while the Nikkei ended little changed, as concerns around a resurgence of COVID-19 outweighed gains from chip-related shares. The broader Topix slipped 0.22% to close at 1,956.56, while the Nikkei 225 Index trimmed gains to end 0.01% higher at 29,685.37. Japan and the United States agreed last week to cooperate on investment in semiconductor supply chains in response to a global shortage of chips, which is seen as positive for Japanese chemical and industrial companies, analysts said. But, risks related to the rapid spread of COVID-19 remain. The governor of Tokyo is considering another state of emergency in response to a steady increase in virus cases. And, analysts said, Japan’s slow vaccinations’ pace is also a negative factor.

Wall Street Week Ahead: Tech retakes market lead as investors eye yields, earnings

4 Min Read NEW YORK (Reuters) - U.S. technology and growth stocks have taken the market’s reins in recent weeks, pausing a rotation into value shares as investors assess the trajectory of bond yields and upcoming earnings reports. Technology has been the top-performing S&P 500 sector in April, rising 8% versus a 5% rise for the benchmark index. Big tech-related growth stocks in other S&P 500 sectors such as Amazon Inc, Tesla Inc and Google-parent Alphabet Inc have also charged higher. FILE PHOTO: A Wall St. street sign is seen near the New York Stock Exchange (NYSE) in New York City, U.S., September 17, 2019. REUTERS/Brendan McDermid/File Photo/File Photo

Japanese shares rise on economic recovery hopes, Nomura falls

By Reuters Staff 2 Min Read TOKYO, March 29 (Reuters) - Japanese shares rose on Monday, lifted by optimism around corporate earnings and U.S. economic recovery, while Nomura Holdings fell the most in a decade after it flagged a potential $2 billion loss. The Nikkei share average advanced 0.81% to 29,412.24 by 0144 GMT, while the broader Topix rose 0.49% to 1,993.93. “Investors are buying companies, particularly manufacturers that would benefit from the recovery of the global economy, and whose earnings are set to rise in the coming years,” said Shigetoshi Kamada, general manager for the research department of Tachibana Securities. Aiding sentiment, the S&P 500 and Dow closed at record highs on Friday on hopes for a recovery in the U.S. economy as vaccine rollouts continue.

Take Five: ECB, earnings and geopolitical escalations

By Reuters Staff 1/ ECB DAY FILE PHOTO: European Central Bank (ECB) headquarters building is seen in Frankfurt, Germany, March 7, 2018. REUTERS/Ralph Orlowski/File Photo The European Central Bank meets on Thursday and will likely be pressed on signs of divisions over the future pace of bond purchases, which have been stepped up recently to prevent a rise in borrowing costs from derailing the recovery. Dutch central bank head Klaas Knot believes the acceleration is temporary, while ECB chief Christine Lagarde says the economy is still standing on “crutches” and stimulus cannot be withdrawn. The euro area is still grappling with lockdowns and a third wave of COVID-19 but business activity appears to be holding up. The April flash purchasing managers index on Friday should provide fresh clues on the outlook. Signs of a swift recovery could raise questions over when the ECB will slow its bond buying, putting recent bond market calm to the test.

Chip shortage weighs on car sector recovery - Volkswagen CEO

By Reuters Staff Slideshow ( 2 images ) FRANKFURT (Reuters) - An ongoing shortage of crucial semiconductors is the only factor weighing on a global recovery of the car sector from the coronavirus crisis, Herbert Diess, chief executive of Volkswagen AG, said on Thursday. Demand is picking up in the United States, Brazil and China, Diess said at the Hannover Messe trade fair, adding the world’s second-largest carmaker was also working through high order intake in Europe. “The only thing that is currently limiting and slowing down this recovery is the critical supply situation worldwide with regard to various semiconductor types,” Diess said.

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