Japan Stocks surge on hopes for anti-viral drug

Japan share market advanced on Monday, 13 July 2020, following U.S. shares' solid lead late last week, as a positive update from U.S. pharmaceutical company firm's Gilead's antiviral drug to treat COVID-19 brushed off worries about a fresh wave of coronavirus infections and its impact on the economic recovery. Around late afternoon, the 225-issue Nikkei Stock Average surged 430.02 points, or 1.93%, to 22,720.83. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 32.36 points, or 2.11%, at 1,567.56.

All 33 issues of industry category of Topix index climbed into black territory, with Mining, Iron & Steel, Nonferrous Metals, Transportation Equipment, Air Transportation, Banks, Marine Transportation, and Securities & Commodities Futures issues being notable gainers.

Market sentiment improved after U.S. biopharmaceutical company Gilead Sciences Inc's said last week that its antiviral drug remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients.

New coronavirus outbreaks in some parts of the world are causing partial lockdown restrictions to be reimposed, fueling doubts about the likely pace of the global recovery. Florida on Sunday posted the biggest one-day rise in cases since the coronavirus pandemic began in the U.S., reporting 15,300 new infections. South Carolina and Texas set new marks a day earlier, while New York's rate remained steady.

CURRENCY: The Japanese yen traded at 106.85 per dollar following a strengthening from levels above 107.2 against the greenback last week.

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