Japan Shares Closed on Upside on Support of Stocks Linked to the Economic Cycle

Japanese stocks rose Thursday, May 6, to record their largest percentage gain in two weeks, as investors flocked to stocks linked to the economic cycle after Wall Street’s gains, but technology stocks that tracked the fall of the Nasdaq index limited the gains.

The Nikkei index advanced 1.8% to close at 29331.37 points, while the broader Topix index rose 1.54% to 1927.40 points. The market reopened today after a three-day public holiday.

This closed the DowJones manufacturing index at an unprecedented high yesterday, supported by sensitive sectors of the economy, while the Nasdaq index closed lower, after Treasury Secretary Janet Yellen proposed to raise interest rates.

Despite signs of the US economy recovering from low levels reached due to Covid-19, the Japanese economy remains under pressure, as the country considers extending the state of emergency in Tokyo and other major urban areas.