Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan shares hit 5-week high on vaccine, economic growth hopes

Published 07/15/2020, 02:40 PM
Updated 07/15/2020, 02:50 PM

By Stanley White
TOKYO, July 15 (Reuters) - Japanese stocks rose on Wednesday
to a five-week high as encouraging results from a coronavirus
vaccine study and optimism about swift economic growth supported
expectations that corporate earnings would pick up in the second
half of the year.
The Nikkei index .N225 settled 1.59% higher at 22,945.50
after hitting its highest level since June 10, with industrial
and consumer discretional shares leading the advance.
Risk sentiment got a boost after U.S. biotech firm Moderna
Inc MRNA.O said its experimental coronavirus vaccine showed it
was safe and provoked immune responses in an early-stage study.
"Japanese value shares are starting to catch up with the
recent rally in global equities," said Kiyoshi Ishigane, chief
fund manager at Mitsubishi UFJ Kokusai Asset Management.
"In the bigger picture, expectations for economic growth
remain solid. We now have better methods to track the
coronavirus and are further along in developing drugs to treat
it."
Recent data from many major economies has shown signs that
corporate activity and consumer spending are recovering from
coronavirus-induced sharp declines.
Meanwhile, the Bank of Japan kept monetary policy steady on
Wednesday and maintained its view that the economy would
gradually emerge from the pandemic. There were 207 advancers on the Nikkei index against 16
decliners.
The largest percentage gainer was car maker Nissan Motor Co
Ltd 7201.T with a rise of 7.25%. Advertising agency Dentsu
Group Inc 4324.T gained 5.48%, while plant engineering company
JGC Holdings Corp 1963.T added 5.37%.
The top percentage loser was pharmaceutical company Eisai Co
Ltd 4523.T with a 1.79% drop. Drugmaker Kyowa Kirin Co Ltd
4151.T lost 1.32%, while Tokai Carbon Co Ltd 5301.T slipped
0.71%.
The broader TOPIX index .TOPX rose 1.56% to 1,589.51.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.08 billion, compared with the 30-day
average of 1.3 billion.

(Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.