Japan Stocks Rise on Hopes For US Economy

Japanese stocks rose on Wednesday, September 2, after positive data for the manufacturing sector in the United States revived hopes that the global economic recovery from the Covid-19 pandemic remained on track.

Nikkei closed up 0.47% to 23,247.15 points, while TOPIX index rose 0.47% to 1623.40 points.

Stocks also received a boost after Japanese Cabinet Secretary Yoshihide Suga emerged as the leading candidate to replace Prime Minister Shinzo Abe in a ruling party leadership election on September 14.

Analysts say that if Suga becomes prime minister this indicates limited major changes in economic policy and fewer chances of political instability, both of the positive for stocks.

Japan’s capital goods sector received a boost after the Institute for Supply Management said on Tuesday that manufacturing activity in the US accelerated to its highest level in nearly two years in August.

Equities were also supported by progress in talks on additional fiscal stimulus in the United States.