Japan Stocks Post Biggest Weekly Gain in Two Months Thanks to US Stimulus Hopes

Japanese stocks achieved the largest weekly gain in two months, thanks to hopes for more stimulus in the United States, although some investors doubt the prospects of reaching an agreement in this regard before the US presidential elections.

The Nikkei index closed down 0.12% at 23,619.69 points today. For the week, the index advanced 2.6%, the biggest gain since the week ending August 14.

The broader TOPIX index fell 0.49% to 1,647.38 points. On the week, TOPIX rose 2.4%.

US President Donald Trump said that talks with Congress about stimulus to confront the repercussions of the Corona virus have resumed. The president abruptly ended the talks earlier this week.

But House Speaker Nancy Pelosi, who belongs to the Democratic Party, has played down the prospect of independent bills, and relations between the Republican and Democratic political parties are likely to become more tense as the presidential election approaches, a subject of intense disagreement on November 3.

The US economy is suffering in light of the high number of cases of the emerging coronavirus, and it is sure to lose momentum in the absence of new stimulus, which threatens the Japanese export sector.

Mitsubishi Motors was the largest percentage loser on the Nikkei, down 4.2%, followed by Takashimaya, which lost 4.22%, and JGC Holdings, which fell 3.55%.

The highest percentage gainers were Seven & I Holdings, which rose 4.61%, followed by Fast Retailing, which gained 2.87%, and Daikin Industries, which rose 2.81%.

14 stocks advanced on the Nikkei, compared to a decline of 179.