Tokyo: Stocks rise on US stimulus optimism

[TOKYO] Japanese shares closed higher on Wednesday as optimism that US lawmakers could reach an agreement on a pre-election stimulus package lifted riskier assets globally.

The benchmark Nikkei share average settled 0.31 per cent higher at 23,639.46, erasing some of Tuesday's losses with 188 advancers on the index against 35 decliners. The broader Topix gained 0.73 per cent to 1,637.60.

All but two of the 33 sector sub-indexes on the Tokyo exchange finished higher. Cyclical iron and steel, miners and shippers were the three top performers on the main bourse.

Analysts said a rise in US stock futures during Asian trade created a tailwind for the market. E-mini futures for the S&P 500 were last up 0.47 per cent.

With just two weeks until the US presidential election, lawmakers moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.

The news helped Wall Street finish higher overnight and buoyed sentiment in Asia.

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Among the gainers in Japan, Shimachu soared by 14.54 per cent, shy of its daily limit, after furniture retailer Nitori Holdings said it may bid for the home improvement retailer, threatening a tender offer by DCM Holdings.

Nitori and DCM were down 1.63 per cent and 6.81 per cent, respectively.

Shares of ANA Holdings ended 1.73 per cent higher, despite reports that the coronavirus-battered airline operator was expected to post a net loss of 530 billion yen (S$6.81 billion) for the fiscal year ending in March 2021. ANA said after market hours that the forecast was undecided.

Takara Bio jumped 5.42 per cent after the biotechnology company lifted its net profit forecast for the six months ended Sept 30.

Nojima gained 7.31 per cent after upgrading its net profit outlook for the fiscal year ending in March 2021.

The Mothers Index of startup firm shares reversed course to close 0.48 per cent lower.

REUTERS