Japan: Market extends gain on economic recovery hopes

Japan share market finished higher for third straight session on Wednesday, 27 May 2020, as investors took heart from gains on the Wall Street's overnight on enthusiasm over coronavirus vaccines and continued hopes for increased economic activity in Japan and other countries, where coronavirus pandemic restrictions have been eased. The yen's softer tone versus the U.S. dollar also contributed to a largely upbeat mood.

At closing bell, the 225-issue Nikkei Stock Average added 148.06 points, or 0.70 percent, to 21,419.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 14.74 points, or 0.96 percent, to 1,549.47.

 

On the TSE first section, rising issues outnumbered falling ones 1,431 to 662, while 77 issues were unchanged. Volume grew to 1.763 billion shares from Tuesday's 1.472 billion shares.

Oil issues, including JXTG and Cosmo, benefited from higher crude oil prices. Automaker Isuzu jumped after its operating profit for the year that ended in March beat a market consensus. Nissan Motor accelerated after reports said the automaker is planning a hefty cost cutting initiative to mitigate the effects the global pandemic has had on its sales and output. Among the other major winners were financial issues, including banking, insurance and securities.

On the other hand, Semiconductor-linked issues came under pressure. Transportation-oriented issues also tracked lower, as investors took profits following the sectors' recent rally triggered by Japan completely lifting its state of emergency over the COVID-19 pandemic on Monday.

CURRENCY: The U.S. dollar was last quoted at 107.52-53 yen, compared with 107.52-62 yen in New York and 107.82-83 yen on Tuesday in Tokyo.

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