Japan Stocks Closing Higher on Hopes of US Stimulus

Japanese stocks closed higher for a second session Thursday (December 17th) as sentiment received a boost from expectations of further economic stimulus in the US and pledges of support from the US Federal Reserve.

The benchmark Nikkei index rose 0.18% to 26,806.67 points, offsetting losses incurred in morning trade. The broader Topix index rose 0.32% to 1,792.58 points.

Caution prevailed among some dealers, as Japan battled the third wave of coronavirus, but positive developments in the United States provided support.

Senior lawmakers in the Democratic and Republican parties expressed their optimism about agreeing on a $900 billion aid bill to alleviate the repercussions of Covid-19, and the US Central Bank pledged to continue pumping cash into financial markets until the economy regains recovery.

The stocks may easily decline due to profit-taking selling after the Nikkei reached its highest level in 29 and a half years, but analysts point to optimistic expectations in the medium term.