Sat, 19 Sep 2020

TOKYO, Aug. 11 (Xinhua) -- Tokyo stocks closed higher Tuesday as a comparatively soft yen encouraged buying with sentiment also helped by U.S. President Donald Trump's executive orders to assist those who have lost jobs due to the pandemic amid hopes U.S. lawmakers will swiftly agree on a sizable virus-related stimulus package to help the virus-battered economy.

The 225-issue Nikkei Stock Average gained 420.30 points, or 1.88 percent, from Friday to close the day at 22,750.24, marking its highest closing level since July 22.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 39.22 points, or 2.54 percent, to finish at 1,585.96.

Markets here were closed on Monday for a national holiday.

Following the market's decline over the past three trading days, investor sentiment was bolstered by U.S. President Donald Trump signing executive orders to maintain assistance for unemployment benefits, temporary payroll tax deferral, and student-loan relief, among others, local brokers said.

They added that despite divisions between Democrats and Republican lawmakers over likely and very much-needed new COVID-19-linked stimulus measures, hopes remained high that substantial measures would soon be rolled out to help underpin the virus-hit economy.

Equity strategists also said that adding to some hopes for the broader global economic recovery from the pandemic, better-than-expected U.S. jobs data for July released late last week also combined to buoy sentiment somewhat and sent investors after issues deemed oversold during the market's recent downturn.

"Better-than-expected U.S. job data for July reported late last week and Trump's signing of the executive orders offset concern about the virus-hit U.S. economy," Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., was quoted as saying.

"The improved prospects triggered buybacks of some shares that were deemed undervalued, including real estate issues," Horiuchi also said.

The market here, along with a comparatively soft yen giving exporter issues a boost, also gained support from solid performances on Chinese bourses, strategists here said.

"Tokyo shares are up following rallies on the Dow and after three days of losses in Tokyo. They were also boosted by gains on the Hong Kong and Shanghai bourses," Yoshihiro Ito, chief strategist at Okasan Online Securities, was quoted as saying.

By the close of play, real estate, iron and steel, and bank-linked issues comprised those that advanced the most.

Among real estate issues bought back following the market's recent decline, Tokyu Fudosan Holdings climbed 5.4 percent, while Mitsui Fudosan surged 8.1 percent. Mitsubishi Estate, for its part, ended the day 7.2 percent higher.

Exporters advancing on a favorable yen-dollar pairing included Toyota adding almost 4 percent, while Honda accelerated 6.4 percent. Nissan, meanwhile, closed the day 6.4 percent higher.

Nikkei heavyweight Fast Retailing, owner and operator of the Uniqlo chain of casual clothing stores, was a notable winner Tuesday, adding 1 percent by the close.

SoftBank Group weighed, however, retreating 2.45 percent prior to announcing its earnings results, which after the closing bell showed the telecoms behemoth's quarterly net profit to June rose 11.9 percent.

Issues that rose outpaced those that fell by 1,810 to 330 on the First Section, while 33 ended the day unchanged.

On the main section on Tuesday, 1.627 billion shares changed hands, rising from Friday's volume of 1.189 billion shares.

The turnover came to 2.743 trillion yen (25.850 billion U.S. dollars).

More Tokyo News

Access More

Sign up for The Tokyo News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!