Japan Stocks gain on U.S. stimulus deal hopes, domestic earnings

Japan share market finished session higher on Wednesday, 21 October 2020, as the market mood lifted up lifted by some firms upgrading earnings outlooks and renewed hopes for an agreement to be reached on U.S. stimulus measures.

At closing bell, the 225-issue Nikkei Stock Average added 72.42 points, or 0.31%, to 23,639.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange 11.86 points, or 0.73%, to 1,637.60.

All but two of the 33 sector sub-indexes on the Tokyo exchange finished higher. Cyclical iron and steel, miners and shippers were the three top performers on the main bourse.

 

Tokyo stocks opened higher but remained top-heavy for the rest of the day after some companies including electronic components maker Rohm on Tuesday revised upward their profit forecasts for the fiscal first half ended last month,

The market was also lifted by reports that U.S. President Donald Trump is willing to accept a coronavirus relief bill drafted by Democrats. With just two weeks until the US presidential election, lawmakers moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. The news helped Wall Street finish higher overnight and buoyed sentiment in Asia.

Shimachu soared by 14.5% after furniture retailer Nitori Holdings said it may bid for the home improvement retailer, threatening a tender offer by DCM Holdings. Nitori and DCM were down 1.63 per cent and 6.81 per cent, respectively.

Shares of ANA Holdings ended 1.7% higher, despite reports that the coronavirus-battered airline operator was expected to post a net loss of 530 billion yen for the fiscal year ending in March 2021.

Takara Bio jumped 5.4% after the biotechnology company lifted its net profit forecast for the six months ended Sept amid strong demand for products related to polymerase chain reaction tests to detect the novel coronavirus. .

Nojima gained 7.3% after upgrading its net profit outlook for the fiscal year ending in March 2021.

CURRENCY NEWS: The U.S. dollar hovered in the lower 105 yen range for most of the day after the White House and Democratic Party negotiators said they will continue talks after the Tuesday deadline over U.S. stimulus measures to counter the economic impact of the coronavirus pandemic.

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