Nikkei recoups losses but stalled vaccine trials, stimulus talks weigh

Taiyo Yuden

14/10/2020 07:24

TOKYO, Oct 14 (Reuters) - Japan's stock benchmark Nikkei
recouped early losses on Wednesday to close marginally higher,
but sentiment remained subdued over stalled COVID-19 vaccine
trials and lack of agreement on additional U.S. fiscal stimulus.
    The benchmark Nikkei share average  .N225  rose 0.11% to
23,626.73, while the broader Topix  .TOPX  lost 0.32% to
1,643.90.
    Tokyo shares followed Wall Street lower in early trade
before reversing course in the afternoon, which analysts
suspected was due to the Bank of Japan's exchange-traded fund
buying. 
    On Tuesday, major indexes on Wall Street ended lower as
Johnson & Johnson  JNJ.N  and Eli Lilly and Co  LLY.N  halted
coronavirus vaccine trials over safety concerns, dampening
investor sentiment.  urn:newsml:reuters.com:*:nL4N2H406N  urn:newsml:reuters.com:*:nL4N2H442O
    Fading hopes for a new U.S. coronavirus relief package also
weighed on the market, as U.S. House Speaker Nancy Pelosi
rejected a $1.8 trillion coronavirus relief proposal from the
White House.  urn:newsml:reuters.com:*:nL1N2H40PZ
    Back home, Apple-related issues underperformed on
profit-taking and dented by a 2.7% fall in Apple Inc  AAPL.O 
shares following an event where the company unveiled its latest
iPhone.  urn:newsml:reuters.com:*:nL1N2H4118 
    TDK Corp  6762.T  edged 0.08% lower, while Taiyo Yuden
 6976.T  fell 0.27%.
    Financial shares also took a hit from a weak performance in
their U.S. peers, with Sumitomo Mitsui Financial Group  8316.T 
dropping 1.71% and Mitsubishi UFJ Financial Group  8306.T  down
1.01%.
    Meanwhile, semiconductors performed strongly, with Tokyo
Electron Ltd  8035.T  rising about 2.6% and Lasertec Corp
 6920.T  up 0.1%.
    "The moves are quite subtle when only looking at the Nikkei
share average. But the Mothers Index is renewing highs and
semiconductor stocks are still strongly sought after," said
Takashi Hiroki, chief strategist at Monex Securities.
    The Mothers Index  .MTHR  of start-up firms gained 1.37%,
posting its highest close since January 2018.
    Elsewhere, ANA Holdings  9202.T  dipped 4.59% after reports
that the company was going to cut monthly wages for all workers
by 5%.  urn:newsml:reuters.com:*:nL4N2H42OZ
    Nippon Steel  5401.T  lost 3.82% on news that the company
would sell two U.S. plants as it speeds up a reorganisation in
overseas operations.  urn:newsml:reuters.com:*:nL4N2H44U3 

 (Reporting by Eimi Yamamitsu; Editing by Subhranshu Sahu)
 ((eimi.yamamitsu@thomsonreuters.com;))