Tokyo stocks end sharply higher on hopes for global economic recovery
Source: Xinhua | 2021-02-09
Tokyo stocks finished sharply higher Monday, with the benchmark Nikkei stock index hitting a 30-year closing high, as expectations for a hefty U.S. stimulus package to be implemented to tackle the novel coronavirus pandemic raised hopes for the broader pace of the global economic recovery.
The 225-issue Nikkei Stock Average climbed 609.31 points, or 2.12 percent, from Friday to close the day at 29,388.50, marking its highest closing level since Aug. 3, 1990.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 33 points, or 1.75 percent, at 1,923.95, to book its highest close since June 5, 1991.
Local brokers said that progress made by Democrats towards turning U.S. President Joe Biden's 1.9-trillion-U.S.-dollar COVID-19 relief package into legislation without the need for Republican support, lifted the market mood here, amid hopes for a broader global economic recovery from the pandemic.
"Market players are growing optimistic that the U.S. stimulus plan would be enacted in the next two to three weeks," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
Market strategists here added that on the domestic front, a drop in COVID-19 cases and the government's vaccination rollout plans, coupled with upbeat earnings reports and outlooks from major firms underpinned a positive market mood.
"With the vaccine rollouts and the fall in the number of daily COVID-19 infections, expectations for the normalization of the economy is rising," Soichiro Matsumoto, chief investment officer Japan at Credit Suisse Private Banking, was quoted as saying.
"Better-than-expected corporate performance in this environment is also lifting sentiment. Many U.S. firms have reported upbeat results and Japanese companies, particularly those sensitive to overseas demand, are following suit," Matsumoto added.
By the close of play, iron and steel, mining and marine transportation-linked issues comprised those that gained the most.
Among steelmakers advancing on hopes for the global economic recovery, JFE Holdings leapt 7.4 percent, while Kobe Steel surged 17.5 percent.
Shipping firms advanced on hopes that demand will improve, with Kawasaki Kisen adding 4.4 percent, while Nippon Yusen rose 5.9 percent by the close.
Transportation issues also found favor, with East Japan Railway adding 4.9 percent, Keio gaining 3.9 percent, while Odakyu Electric Railway jumped 3.8 percent.
Issues that rose outpaced those that fell by 1,710 to 429 on the First Section, while 52 ended the day unchanged.
On the main section on Monday, 1,585.95 million shares changed hands, rising from Friday's volume of 1,537.27 million shares.
The turnover on the first trading day of the week came to 3,392.49 billion yen (32.12 billion U.S. dollars).
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