Japan’s Topix Closes Lower as Corona Worries Overshadow Gains in Chip Stocks

Japan’s TOPIX reversed direction to close lower on Monday, while the Nikkei was little changed on concerns about mounting COVID-19 infections, overshadowing gains in chip-related stocks.

The broader TOPIX index fell 0.22% to close at 1956.56 points, while the Nikkei index trimmed its gains to close, up 0.01% to 29,685.37 points.

Japan and the United States agreed last week to cooperate in investing in semiconductors to address a global shortage of chips, which analysts say is positive for Japanese chemical and industrial companies.

But the risks associated with a rapid spread of Covid-19 persist, as the governor of Tokyo is considering imposing a state of emergency again to cope with a steady increase in cases of the virus. Analysts say the slow pace of vaccinations in Japan is a negative factor.