Tokyo Stocks Gain as US Stimulus Hopes Lift Technology Issues

Tokyo stocks gain as US stimulus hopes lift technology issues. Tokyo stocks ended higher Monday, snapping a three-day losing streak, as hopes for a US stimulus package to cushion the coronavirus pandemic fallout prompted buying in high-priced issues including technology shares. 

The 225-issue Nikkei Stock Average ended up 138.11 points, or 0.46 percent, from Friday at 30,156.03. 

Tokyo Stocks Gain

The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 9.40 points, or 0.49 percent, higher at 1,938.35. Gainers were led by electrical appliance, air transportation, marine transportation and nonferrous metal issues. 

Earlier on Monday, Tokyo stocks advanced as investors bought on weakness from the Nikkei index’s three-day losing streak last week, with sentiment also supported by growing hopes for a US stimulus package. 

The 225-issue Nikkei Stock Average gained 232.91 points, or 0.78 percent, from Friday to 30,250.83. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 14.77 points, or 0.77 percent, at 1,943.72. 

The US dollar stayed in the mid-105 yen range, fetching 105.62-63 yen at noon, compared with 105.39-49 yen in New York and 105.59-61 yen in Tokyo at 5 p.m. Friday. 

The euro was quoted at $1.2120-2120 and 128.00-01 yen against $1.2113-2123 and 127.71-81 yen in New York and $1.2109-2110 and 127.86-90 yen in Tokyo late Friday afternoon. 

Bargain-hunting kicked in from the outset, with the Nikkei inflated by high-priced issues including technology shares. 

The key index had lost about 450 points, or 1.5 percent, during the past three days through Friday and had fallen back below the 30,000 mark that it had earlier retaken for the first time in three decades. 

“Last week saw quick dip-buying once the Nikkei briefly sank below 30,000, a move that provided relief among investors as they reconfirmed the market’s downside was solid,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. 

Hopes grew for US President Joe Biden’s $1.9 trillion stimulus package as the House of Representatives plans to vote on it later this week, Ichikawa added. 

On the First Section, advancing issues outnumbered decliners 1,676 to 450, while 65 ended the morning unchanged. 

Among those high-priced issues, chip equipment makers Tokyo Electron climbed 2,160 yen, or 5.0 percent, to 45,700 yen, and Screen Holdings gained 350 yen, or 3.9 percent, to 9,400 yen. 

Fujifilm Holdings rose 46 yen, or 0.7 percent, to 6,384 yen, following a report over the weekend that it will restart a clinical trial in Japan of its anti-viral drug Avigan for the treatment of COVID-19 patients. Tokyo stocks gain as US stimulus hopes lift technology issues   (Kyodo News Tokyo, The Jakarta Post)