TOKYO, April 17 (Xinhua) -- Tokyo stocks closed sharply higher Friday, with the benchmark Nikkei stock index ending at a one-and-a-half-month high on rising expectations the U.S. economy could restart soon as Washington has compiled guidelines for lifting restrictions.

The 225-issue Nikkei Stock Average gained 607.06 points, or 3.15 percent, from Thursday to close the day at 19,897.26, marking its highest closing level since March 6.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 20.30 points, or 1.43 percent, to finish at 1,442.54.

Trading got off to a bright start and remained relatively firm throughout the day as the market mood was buoyed by U.S. President Donald Trump unveiling federal guidelines that could lead to state governors easing some of the stay-at-home measures and see citizens possibly returning to work in a phased manner, analysts here said.

"Japanese shares were supported by rises in U.S. stocks as Trump vowed to press ahead with reopening the economy," Toshiyuki Kanayama, senior market analyst at Monex, was quoted as saying.

Local analysts also added that sentiment was also bolstered by reports that the antiviral drug Remdesivir had shown some positive results in treating coronavirus patients in a clinical trial in the U.S..

Chinese equities and U.S. stock futures tracking higher helped underpin the market, strategists here said, adding that China's latest GDP data was largely within market expectations.

"But the impact of China's GDP on the market was limited as the negative figures were within expectations," Yoshihiro Okumura, general manager at Chibagin Asset Management, said.

Japan declaring a nationwide state of emergency over the coronavirus pandemic a day earlier, expanding the coverage from seven prefectures to the entire country through May 6, also had little bearing on the market, analysts here also noted.

"The announcement was a little bit of a surprise, but it's better to take action thoroughly than taking halfway measures," Okumura said.

Exporters here got a boost from hopes the U.S. economy may reopen, in twine with the yen softening against the U.S. dollar.

The U.S. dollar retreated from the upper 107 yen zone to 107.79-81 yen at 5 p.m., compared with 107.85-95 yen in New York and 107.82-83 yen at 5 p.m. on Thursday in Tokyo.

The euro, meanwhile, fetched 1.0828-0829 dollars and 116.72-76 yen against 1.0835-0845 dollars and 116.87-97 yen in New York and 1.0872-0873 dollars and 117.22-26 yen in late Thursday afternoon trade in Tokyo.

Exporters finding favor included, Sony jumping 4.0 percent, Honda Motors accelerating 8.3 percent, and Advantest who closed the day 6.5 percent higher.

Cyclical issues highly susceptible to external factors also advanced on hopes for increased demand, with JFE Holdings Inc. climbing 4.7 percent and Nippon Steel Corp. adding 4.4 percent.

Japan Steel Works leapt 5.1 percent, while Mitsui Mining and Smelting ended the day 5.2 percent higher.

By the close of play, marine transportation, transportation equipment and nonferrous metal issues comprised those that gained the most, and issues that rose just outpaced those that fell by 1,063 to 1,034 on the First Section, while 71 ended the day unchanged.

On the main section on Friday, 1.409 billion shares changed hands, rising from Thursday's volume of 1.298 billion shares.

The turnover on the final trading day of the week came to 2.610 trillion yen (24.19 billion U.S. dollars). Enditem

Related

Go to Forum >>0 Comment(s)