Nikkei scales 6-week high on hopes for virus treatment, U.S. plan to reopen

SYDNEY, April 17 (Reuters) - Japan's share benchmark Nikkei
hit its highest closing level in nearly six weeks on Friday,
tracking gains in U.S. futures, supported by reports of a
potential coronavirus treatment and President Donald Trump's
guidelines for re-opening the economy.
The Nikkei average .N225 advanced 3.2% on short-covering
to finish at 19,897.26, its highest closing since March 9. For
the week, the index eked out a 2.0% gain.
The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing and
considered to be a fear gauge, dropped to as low as 35.31, its
six-week low, reflecting the modest risk-on mood in the market.
U.S. stock futures jumped in the Asian trade after reports
of promising early data related to a potential COVID-19
treatment from Gilead Sciences Inc GILD.O and Trump unveiled
guidelines for re-opening the economy, with S&P 500 e-minis
ESc1 last trading up 3.4%. Traders said today's bounce was primarily led by short
covering by commodity trading advisors (CTAs) and other funds,
and not by fresh buying and thus, is unlikely to be sustainable.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW ,
the world's largest contract chipmaker whose clients include
iPhone maker Apple Inc AAPL.O , reported a near doubling in
first-quarter net profit. Taking a positive cue from this, Tokyo-listed
semiconductor-related stocks were in demand, with chipmaking
gear manufacturer Tokyo Electron Ltd 8035.T rising 3.9% and
test device maker Advantest Corp 6857.T soaring 6.5%.
The broader Topix .TOPX advanced 1.4% to 1,442.54, with
all but six of the 33 sector sub-indexes on the Tokyo exchange
finishing higher.
Highly cyclical sea transport .ISHIP.T , transport
equipment .ITEQP.T and non-ferrous metals .INFRO.T were the
top three performing indexes on the main bourse.
Nippon Steel Corp 5401.T climbed 4.4% and JFE Steel's
parent JFE Holdings Inc 5411.T jumped 4.7%.
Honda Motor Co Ltd 7267.T surged 8.3%, while Nissan Motor
Co Ltd 7201.T and Mazda Motor Corp 7261.T added 3.0% and
4.6%, respectively.
The market largely shrugged off a larger-than-expected fall
of 6.8% year-on-year in China's gross domestic product (GDP)
data for the January-March quarter.