Tokyo: Nikkei closes up more than 2% on virus hopes

[TOKYO] Tokyo's benchmark Nikkei index jumped more than two per cent on Tuesday, extending rallies on Wall Street, as some of the world's worst-hit countries reported falling coronavirus death rates.

The Nikkei 225 index, which surged more than four per cent on Monday, advanced 2.01 per cent, or 373.88 points, to close at 18,950.18, while the broader Topix index was up 1.96 per cent, or 26.91 points, at 1,403.21.

The Nikkei index temporarily topped three per cent in early trade after global equity markets rebounded strongly.

But a decline in US stock index futures triggered profit-taking in the afternoon, eroding part of the early gains, brokers said.

Traders in Japan were also buoyed by the unveiling of an unprecedented stimulus package late on Monday worth around 108 trillion yen (S$1.42 trillion), or 20 per cent of gross domestic product in the world's third-largest economy.

Prime Minister Shinzo Abe is expected to officially confirm a state of emergency in seven key regions of the country on Tuesday that will hand local authorities the power to request people stay at home.

"Investors are encouraged by the package, which sustained... the market," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"But trading is expected to remain cautious for the time being as the outlook for the coronavirus impact is still uncertain," Horiuchi told AFP.

In Tokyo, some high-tech firms were higher with chip-making equipment manufacturer Tokyo Electron jumping 5.68 per cent to 22,105 yen and parts maker Murata Manufacturing up 3.44 per cent at 5,622 yen.

Sony gained 2.13 per cent to 6,690 yen while Toyota rose 0.57 per cent to 6,618 yen, with Nintendo up 0.62 per cent at 43,190 yen.

Japan's household spending in February was down 0.3 per cent from a year earlier, according to official data released by the internal affairs ministry.

The US dollar fetched 108.77 yen in Asian afternoon trade, against 109.23 yen in New York late Monday.

AFP