Japan Stocks climb on Fed commitment

Japan shares advanced on Wednesday, 16 December 2020, with the 225-issue Nikkei Stock Average and broader Topix index settling higher, as investors sentiments buoyed up as the U.S. Federal Reserve commitment to continued its asset purchase program and U.S. lawmakers made progress toward a $900 billion coronavirus relief deal.

At closing bell, the 225-issue Nikkei Stock Average advanced 49.27 points, or 0.18%, to 26,806.67. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 5.75 points, or 0.32%, to 1,792.58.

Japanese shares started with rallies on the back of the U.S. Federal Reserve's commitment to continued stimulus. However, worries about the continued surge in global coronavirus cases and lockdown measures capped gains on the markets.

 

The U.S. Federal Reserve said it will buy at least $120 billion of bonds each month until substantial further progress has been made toward the Committee's maximum employment and price stability goals, according to its post-meeting statement. The U.S. central bank also kept benchmark interest rates near zero, as expected, following the conclusion of its two-day meeting.

CURRENCY NEWS: The Japanese yen traded at 103.35 per dollar, having strengthened from levels above 104 against the greenback seen earlier in the trading week.

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