Tokyo shares jump on recovery hopes - GulfToday

Tokyo shares jump on recovery hopes


Picture used for illustrative purpose. File

Tokyo shares jumped Thursday to a six-month high after overnight surges on major markets, triggered by increasing hopes for economic recovery that drove up broad Asian shares.

The benchmark Nikkei 225 index soared 405.65 points or 1.78 per cent to 23,249.61, the best close since February 21, shortly after the government began asking organisers of large events to consider delaying or cancelling their projects to prevent coronavirus infections.

The broader Topix index rose 18.62 points or 1.16 per cent to 1,624.15.

The Tokyo market's strength came after global shares racked up healthy gains as investors regained their optimism about an economic recovery.

A string of recent indicators, including solid US jobs data, "show macroeconomic data are gaining momentum toward recovery", Okasan Online Securities said in a note.

"The Tokyo market steadily firmed through the day," the brokerage added. 


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"Sell-on-rallies moves kept a cap on gains. Still, the strength of other Asian markets helped encourage buying and kept (the Nikkei) at a high level."

The dollar stood at 106.62 yen, turning slightly softer since New York, where it bought 106.86 yen.

Investors are also welcoming news about progress on the development of vaccines for the coronavirus, the brokerage said.

Russian President Vladimir Putin declared that his nation had developed the world's first safe coronavirus vaccine, though the claim has met with scepticism in the international scientific community.

US President Donald Trump has also announced a $1.5 billion contract with US biotech company Moderna for 100 million doses of an eventual coronavirus vaccine, the sixth such deal reached since May.

Among major gainers, Sony added 2.81 percent to 8,700 yen, while SoftBank Group jumped 3.73 percent to 6,423.

Uniqlo operator Fast Retailing rose 2.05 percent to 61,340 yen.

But Nippon Steel plunged 2.92 percent to 1,030 yen, while airline ANA Holdings lost earlier gains and fell 1.50 percent to 2,428 yen.

Agence France-Presse

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