Japan stocks post biggest weekly gain in 2 months on U.S. stimulus hopes

GS Yuasa

09/10/2020 07:31

By Stanley White
    TOKYO, Oct 9 (Reuters) - Japanese stocks posted their
biggest weekly gain in two months on Friday, on hopes of more
stimulus in the United States, even though some investors
doubted the chances of a deal in the run up to the U.S.
presidential election.
    The Nikkei 225 Index  .N225  ended 0.12% lower at 23,619.69
on Friday. For the week, the Nikkei added 2.6%, its largest gain
since the week ended Aug. 14. The broader TOPIX  .TOPX  fell
0.49% to 1,647.38. For the week, the TOPIX rose 2.4%.
    U.S. President Donald Trump said talks with Congress about a
coronavirus stimulus, which he had abruptly called off earlier
this week, had restarted.  urn:newsml:reuters.com:*:nL1N2GZ0T1
    However, Democrat House Speaker Nancy Pelosi downplayed the
likelihood of stand-alone bills, and relations between the two
political parties are likely to become more strained as a
hotly-contested presidential election on Nov. 3 draws near.
    The U.S. economy, struggling with a rise in cases of the
novel coronavirus, is certain to lose momentum without a new
stimulus — a risk for Japan's export sector.
    "The biggest factor is (that) there is a great lack of
clarity about U.S. economic policy and the presidential
election, which is why it's difficult for markets to move," said
Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai
Asset Management.
    The largest percentage losers on the Nikkei index were
Mitsubishi Motors Corp  7211.T  down 4.24%, followed by
Takashimaya Co Ltd  8233.T  losing 4.22%, and JGC Holdings Corp
 1963.T  down by 3.55%.
    The largest percentage gainers were Seven & i Holdings Co
Ltd  3382.T  up 4.61%, followed by Fast Retailing Co Ltd
 9983.T  gaining 2.87%, and Daikin Industries Ltd  6367.T  up by
2.81%.
    There were 41 advancers on the Nikkei index against 179
decliners. 
    The volume of shares traded on the Tokyo Stock Exchange's
main board  .TOPX  was 0.91 billion, compared with the average
of 1.15 billion in the past 30 days.

 (Reporting by Stanley White; editing by Uttaresh.V)
 ((stanley.white@tr.com; +81 (0)3 4563 2799;
twitter.com/stanleywhite1 ;))