TOKYO, June 26 ― Tokyo's benchmark Nikkei index gained one per cent today as investors took heart from US rallies despite a spike in coronavirus cases that prompted fears of a fresh wave of infections.
The Nikkei 225 rose 1.13 per cent, or 252.29 points, to close at 22,512.08. Over the week, it edged up 0.15 per cent.
The broader Topix index was up 0.99 per cent, or 15.52 points, at 1,577.37, but lost 0.34 per cent from a week before.
“The Japanese market is advancing against the backdrop of rallies in US shares,” said Okasan Online Securities, predicting that investors would be unlikely to gamble too heavily ahead of the weekend.
Analysts were balancing the negative impact of a potential second coronavirus wave with the floods of money pumped into the market by financial authorities.
“Investors are concerned about an increase in infections globally, but sentiment remained positive as major economies continued making efforts to reopen their economies,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.
Market watchers were shifting their focus on key economic indicators to be released next week in the US, Horiuchi added.
The dollar fetched ¥107.09 (RM4.29) in Asian afternoon trade, against ¥107.16 in New York yesterday.
In Tokyo, SoftBank surged 3.03 per cent to ¥5,533 on plans to buy back its shares, while Toyota climbed 1.07 per cent to ¥6,868 with Nintendo up 0.47 per cent at ¥48,500.
Japanese banks gained after the US banking sector rallied on the Federal Reserve's announcement it was loosening rules on investments in risky assets.
Sumitomo Mitsui Financial rose 1.68 per cent to ¥3,073 and Mitsubishi UFJ Financial gained 1.31 per cent to ¥432.3.
Central Japan Railway jumped 2.40 per cent to ¥17,265 after its president held talks with a local governor on construction of its high-speed rail system, which has been delayed by local concerns over possible environmental impacts. ― AFP
