Tokyo: Nikkei closes up over 3.1% on US recovery hopes

[TOKYO] Tokyo's benchmark Nikkei index rallied more than 3.1 per cent on Friday as investors welcomed plans by President Donald Trump for a phased reopening of the US economy.

The Nikkei 225 index rose 3.2 per cent, or 607.06 points, to close at 19,897.26, while the broader Topix index gained 1.4 per cent, or 20.30 points, to 1,442.54.

Japanese shares were supported by rises in US stocks as "Trump vowed to press ahead with reopening the economy," Monex senior market analyst Toshiyuki Kanayama said in a note.

China announced on Friday that its economy contracted for the first time in decades last quarter as drastic measures to contain the coronavirus pandemic brought activity to a standstill.

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

The impact of Prime Minister Shinzo Abe's decision to extend a nationwide state of emergency to combat the coronavirus pandemic was also limited, Mr Okumura told AFP.

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

AFP