Japan Market extends gain to fourth straight session

Japan share market advanced to fourth straight session to finish at a fresh three-month high on Thursday, 28 May 2020, as investors continued to took heart from gains on the Wall Street's overnight on hopes over the gradual reopening of virus-hit economies worldwide and authorities may offer more stimulus to bolster the recovery. Hopes for potential COVID-19 vaccines under development have also helped propel stocks. The yen's softer tone versus the U.S. dollar also contributed to a largely upbeat mood. However, market gains capped amid concerns over a simmering row between the US and China over Hong Kong's special status.

At closing bell, the 225-issue Nikkei Stock Average gained 497.08 points, or 2.32%, to 21,916.31. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 27.87 points, or 1.80%, to 1,577.34.

 

Japanese shares were supported by US rallies with traders bullish on the reopening of the US and Japan and optimism about an eventual COVID-19 vaccine, and authorities may offer more stimulus to bolster the recovery.

The Cabinet approved a 31.91 trillion yen ($296 billion) second supplementary budget on Wednesday for the fiscal year through next March to cushion the economic damage from the pandemic -- the largest-ever amount for an extra budget in Japan.

However, market gains capped amid concerns over a simmering row between the US and China over Hong Kong's special status. The positive mood overwhelmed concerns about deteriorating US-China relations as Washington signals it may no longer regard Hong Kong warranted special treatment as Beijing prepares new security law for the territory.

Banks were one of the gainers on expectations that moves to reactivate a broad range of businesses will improve their business environment.

Nissan Motor rallied 8.2% and Mitsubishi Motor rose 6.4% after the two automakers, along with Renault, announced a revival plan, pledging to cut vehicle ranges and pool manufacturing by region.

Dentsu soared 16.4% after reporting a net profit of 15.36 billion yen in the January-March quarter, returning to the black from a loss of 2.58 billion yen the previous year.

CURRENCY: The dollar fetched 107.86 yen in Asian trade, against 107.77 yen in New York on Wednesday.

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