Japan Shares Closing Higher And Awaits More US Stimulus

Japanese stocks rose, tracking the rally in Wall Street yesterday, as hopes for more US stimulus overtook some concerns about the strength of the global economy.

The Nikkei index closed up 0.51% at 23,204.62 points. The broader TOPIX index gained 0.48% to 1634.23.

But for the week, the benchmark fell 0.67%, as some analysts warn that concerns about a second wave of coronavirus infections in Europe may limit an additional rise for Japanese stocks.

Sentiment was supported during the session, as a senior US lawmaker said that Democrats in the House of Representatives are working on a $ 2.2 trillion coronavirus-related stimulus package that could be voted on next week.

Shares of Japanese high-tech companies rose, tracking gains of major US companies such as Apple, Amazon.com, Nvidia and Facebook.

Traders and analysts said that investors bought stocks before the next round of corporate earnings announcements to ensure they qualify for dividends from their holdings.

Among the top 30 major stocks on the TOPIX index, Keynes Electrical Components Industries topped the gainers, up 2.16%, followed by automaker Toyota Motor, which rose 1.73%.