Japan: Nikkei closes higher

Japan share market finished session higher on Monday, 09 November 2020, as risk sentiments bolstered on removing some U.S. political uncertainty after Democrat Joe Biden declared victory in the race for the White House on the weekend. At closing bell, the 225-issue Nikkei Stock Average advanced 514.61 points, or 2.12%, to 24,839.84. The broader Topix index of all First Section issues on the Tokyo Stock Exchange inclined 23.41 points, or 1.41%, to 1,681.90.

Total 27 issues of 33 industry category of Topix index ended into black territory, with Nonferrous Metals, Precision Instruments, Information & Communication, Marine Transportation, Transportation Equipment, Services, and Machinery issues being notable gainers, while Air Transportation, Pharmaceutical, Mining, and Textiles & Apparels issues were notable losers.

Tokyo stocks opened sharply higher Monday, with the Nikkei jumping to its highest level in 29 years, as market players welcomed Biden's victory as it removed some U.S. political uncertainty and raised expectations he will implement a large fiscal stimulus package to boost the coronavirus-hit economy. Biden has pledged $2 trillion to upgrade America's infrastructure and shift to a clean-energy economy. Democrats are also calling for $2 trillion for an additional stimulus package to fight the economic fallout from the virus. Biden, the vice president under Trump's predecessor Barack Obama, is seeking a tax hike on wealthy individuals and wants to raise the corporate tax rate from 21% to 28%. However, the level is still lower than the 35% rate that was in place when Trump took office nearly four years ago.

Shares of renewable energy producers surged as Biden has pledged to invest in clean energy and said the United States will return to the Paris Agreement, a key U.N. accord to fight climate change, under his presidency. Erex surged 11.6% while Renova soared 10%.

Carmakers strengthened on robust earnings. Honda Motor jumped 8.7% and Toyota Motor rose 2.6% after they upgraded their earnings projections respectively for the year through next March.

CURRENCY NEWS: The Japanese yen moved narrowly in the lower 103 zone against greenback as market participants awaited details of Biden's policy plans. The dollar fetched 103.39-40 yen compared with 103.29-39 yen in New York and 103.42-43 yen in Tokyo at 5 p.m. Friday. The euro was quoted at 122.93-94 yen against 122.67-77 yen in New York and 122.45-49 yen in Tokyo on Friday.

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