Japan Nikkei surges on on US stimulus hopes

Japan share market finished session higher on Thursday, 07 January 2021, as investor sentiment was bolstered by hopes of additional stimulus in the United States after reports of democrats winning the U.S. Senate runoff elections in Georgia. Market gains were, however, capped on concerns over the imminent imposition of a state of emergency in the Japanese capital amid a surge in coronavirus cases.

At closing bell, the 225-issue Nikkei Stock Average advanced 434.19 points, or 1.6%, to 27,490.13. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 30.12 points, or 1.68%, to 1,826.30.

Investor sentiment was bolstered by reports of Democratic victories in the U.S. Senate runoff elections in the state of Georgia, which raised hopes for a substantial economic package in the United States. The victories ensured a blue wave of full Democratic control of the U.S. government and Congress that investors hope will lead to larger stimulus spending

 

Tokyo's market, however, pared some intraday gains after reports that Tokyo's daily new coronavirus cases on Thursday hit a record high above 2,000. Prime Minister Yoshihide Suga is set to declare a state of emergency in the Tokyo metropolitan area later in the day as infections surge.

Shares of sectors sensitive to business cycles, such as steelmakers, rose notably amid U.S. stimulus hopes under the incoming Biden administration. Nippon Steel soared 7.8% to 1,454.50 yen and JFE Holdings surged 7.8% to 1,093 yen.

Financial issues climbed, tracking their U.S. counterparts on higher bond yields. Dai-ichi Life Holdings jumped 7.4% to 1,728.50 yen and T&D Holdings soared 6.7% to 1,350 yen. Sumitomo Mitsui Financial Group advanced 5.5% to 3,475 yen.

CURRENCY NEWS: The Japanese yen traded at 103.41 per dollar after trading at levels below 102.8 against the greenback yesterday.

Powered by Capital Market - Live News