Japan shares rise as investors bet on fresh U.S. economic stimulus

Taiyo Yuden

11/08/2020 03:20

By Stanley White
    TOKYO, Aug 11 (Reuters) - Japanese shares on Tuesday rose by
the most in a week on hopes for additional U.S. fiscal stimulus
to bolster the world's largest economy as major countries
struggle to break free from the coronavirus epidemic.
    The Nikkei 225 Index  .N225  was up 1.59% at 22,686.10 by
0200 GMT with industrial and healthcare shares leading the
gains. The broader Topix index  .TOPX  rose 1.98%.
    U.S. congressional leaders and officials in President Donald
Trump's administration said on Monday they were ready to resume
negotiations on a coronavirus aid deal.  urn:newsml:reuters.com:*:nL1N2FC0XD
    Trump signed executive orders restoring some unemployment
payments and suspending payroll taxes on Saturday after talks
stalled, highlighting the struggle to reach consensus.
    Some investors are betting that U.S. Republicans and
Democrats will eventually agree a comprehensive stimulus
package, which supported Japanese stocks.
    Other investors selectively bought shares of Japanese
companies that have posted solid earnings as more companies
report their results.
    Shares also got a boost as the yen weakened slightly against
the dollar, which tends to inflate exporters' earnings.
    The stocks that gained the most among the top 30 core Topix
names were property developer Mitsubishi Estate Co Ltd  8802.T 
up 5.84%, followed by Honda Motor Co Ltd  7267.T  gaining 5.69%.
    The underperformers among the Topix 30 were mobile operator
and venture capitalist SoftBank Group Corp  9984.T  down 1.92%,
followed by electronic parts maker Murata Manufacturing Co Ltd
 6981.T  losing 1.08%.
    Softbank is expected to report a 75% slump in first-quarter
profit when it releases results after the market close on
Tuesday.  urn:newsml:reuters.com:*:nL4N2F902U
    Another notable mover was Mitsui OSK Lines Ltd  9104.T ,
which fell 4.24% after a ship it operates caused an oil spill
near Mauritius.  urn:newsml:reuters.com:*:nL8N2FC53K
    There were 199 advancers in the Nikkei index against 23
decliners.
    The volume of shares traded on the Tokyo Stock Exchange's
main board  .TOPX  was 0.71 billion, compared with the average
of 1.2 billion in the past 30 days.

 (Editing by Sherry Jacob-Phillips)
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