Japan Stock Closed Lower Due to Vaccine Delay And Caution Ahead of Earnings Season

Japanese stocks closed lower on Tuesday, January 26, as they witnessed profit-taking sales due to concerns about delays in the distribution of anti-coronavirus vaccines, as well as in an American stimulus package and a state of tension before the start of the corporate earnings announcement season.

The Nikkei index fell by 0.96% to 28,546.18 points, while the consumer stocks linked to the economic cycle, energy and materials industries led the decline. The broader Topix index fell 0.75% to 1,848 points.

The United States is facing difficulties to intensify the vaccination process, and Europe continues to face delays from suppliers, and Japan has not yet started the vaccination process, which negatively affects investor sentiment.

This jumped Japanese stocks to the highest level in 30 years last week, but a period crowded with earnings announcements in the United States and Japan this week, as well as the meeting of the US Federal Reserve, which ends this week, stimulated investors to take profits.

Many policymakers at the Bank of Japan called for more flexibility in ETF purchases, which could emerge as another negative factor for stocks when the central bank reviews its policies in March, according to some analysts.