Total 25 out of 33 industry categories of Topix index advanced, with Pharmaceutical, Electric Power & Gas, Services, Foods, Precision Instruments, and Information & Communication issues being notable gainers, while Iron & Steel, Construction, Mining, and Nonferrous Metals issues were notable losers.
Wall Street stocks rocketed higher overnight, as former Vice President Joe Biden emerging as the frontrunner of the Democratic Party's presidential race, winning at least nine and possibly 10 of the nomination contests held across 14 states, providing relief to market participants who are wary of the more progressive policy positions of rival Bernie Sanders, a self-described democratic socialist. Sanders favors hefty taxes on wealth and a radical remake of the US healthcare system.
Meanwhile, the Federal Reserve's surprise interest rate cut and upbeat US economic data soothed worries about the impact of the spreading coronavirus outbreak. The Fed jolted markets with a half-a-percentage-point rate cut on Tuesday, saying that while the economy's fundamentals remain strong, the coronavirus poses evolving risks to economic activity. Investors are now encouraged by other global central banks following suit, with the Bank of Canada also lowering rates by 50 bps to 1.25%
Shares were also bolstered by the news that U.S. lawmakers reached a deal on Wednesday for an $8.3 billion emergency aid package to combat the spread of coronavirus. It includes nearly $7.8 billion for agencies dealing with the virus and about $500 million for telehealth services. Also on Wednesday, the International Monetary Fund said it would provide $50 billion in emergency funding, including no interest loans, to help poorer countries respond to the epidemic.
Major blue-chip exporters rallied, with Sony up 1.7%t, Toyota up 0.6 per cent and chip-making equipment manufacturer Tokyo Electron up 1.1%. Takeda Pharmaceutical rallied 3.4% after it announced it will develop a medicine to cure the new coronavirus.
CURRENCY NEWS: The Japanese yen, often seen as a save-haven in times of economic uncertainty, traded at 107.54 per dollar in Asian trade, against 107.55 yen per dollar in New York late Wednesday.
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