Japan Stocks extend gains on on hopes of coronavirus slowdown

Stocks in Japan market climbed up in volatile trading on Tuesday, 07 April 2020, as investor risk sentiment supported by tracking sharp gains in Wall Street stocks overnight after tentative signs of the coronavirus outbreak being contained in New York and other global hot spots. Japan's biggest-ever stimulus package worth 108 trillion yen to ease the impact from the new coronavirus also helped stocks extend gains. Market gains were, however, capped on caution about the impact of a state of emergency in Japan to be declared later in the day. At closing bell, the 225-issue Nikkei Stock Average advanced 378.88 points, or 2.01%, to 18,950.18. The broader Topix index of all First Section issues on the Tokyo Stock Exchange jumped 26.91 points, or 1.96%, at 1,403.21.

All 33 industry category of Topix index surged, with Glass & Ceramics Products, Services, Rubber Products, Metal Products, Construction, Warehousing & Harbor Transportation Services, and Air Transportation issues being notable gainers.

 

Investor sentiment received a boost on hopes that measures taken in some hard-hit countries against the virus outbreak will prove effective in slowing the spread. Data over the weekend showed a slowing in the number of daily U.S. coronavirus cases, although it is still too early to determine a lasting trend. Death tolls in some of the world's coronavirus hot spots, including Spain and Italy, also showed signs of easing. Globally, more than 1.3 million people have been infected by the coronavirus while at least 74,169 lives have been taken, according to data compiled by John Hopkins University.

Japan's biggest-ever stimulus package worth 108 trillion yen to ease the impact from the new coronavirus also helped stocks extend gains. The Japanese government is planning to finalise a massive stimulus package worth 108 trillion yen - equal to 20% of Japan's economic output - to cushion the heavy impact of the pandemic on the world's third-largest economy. The proposed large stimulus package is a very positive step.

Market gains were, however, capped amid concerns over a further slowdown in economic activities after Prime Minister Shinzo Abe said Monday that he would declare a state of emergency for Tokyo, Osaka and five other prefectures.

Technology issues were higher following gains by their U.S. peers overnight. Tokyo Electron Ltd climbed 5.7% and Advantest Corp soared 12.7%. Screen Holdings climbed 6.1 percent and Sumco was up 6.5 percent.

CURRENCY: The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 100.205 following an earlier high of 100.79. The Japanese yen traded at 108.79 per dollar after seeing levels below 108 in the previous trading week.

Powered by Capital Market - Live News