Japanese Shares Fall as Investors Look Past Upbeat Corporate Outlook
Japanese shares inched lower on Tuesday as investors looked past upbeat corporate outlook amid worries about the governments handling of the COVID-19 pandemic, while chip-related stocks took cues from a positive finish overnight on the NASDAQ.
Japan imposed a third state of emergency on Tokyo and other big cities, but local media have reported many parts of Tokyo are still crowded as people arent complying with the order.
Chip-related shares gained, aided by a strong finish for the NASDAQ overnight. Tokyo Electron inched up 0.29%, TDK gained 1.45% and Kyocera rose 0.95%.
Shares in companies, which reported positive earnings, are not rising. That means investors expectations for corporate outlook are too high, said Takatoshi Itoshima, strategist at Pictet Asset Management.
Japans central bank maintained its massive stimulus on Tuesday and projected inflation missing its 2% target for years to come, as fresh curbs to combat a spike in COVID-19 cases overshadow the boost to growth from solid global demand, Reuters reported.
As widely expected, the BOJ maintained its short-term interest rate target at -0.1% and that for 10-year bond yields around 0%.
Australian shares fell on Tuesday, with losses in technology and financial stocks outweighing gains in the mining sector as iron ore prices and gold prices firmed.
Financial stocks fell 0.44%, led by Zip Co Ltd, down 2.22%, and AMP Ltd, losing 1.75%. Technology stocks fell 0.12%, led by Appen Ltd, down 0.97%, and Afterpay Ltd, losing 0.47%.
South Korean shares slipped on Tuesday despite an upbeat first-quarter GDP data, as foreign investors reduced their positions ahead of earnings from U.S. tech giants and the Federal Reserve policy meeting later this week.
In other news, South Koreas economic growth beat expectations in the first quarter, extending the countrys export-led recovery as global demand surged and the government maintained support for ailing small businesses.
Finally, foreigners were net sellers of 192.1 billion won ($172.79 million) worth of shares on the main board.
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