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Japan stocks track Wall Street higher, but virus worries weigh

Published 05/03/2020, 03:27
Updated 05/03/2020, 03:36
© Reuters.  Japan stocks track Wall Street higher, but virus worries weigh
JP225
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TOPX
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4151
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7201
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4502
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6305
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7269
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2269
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3401
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* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7

* Healthcare sector shines on virus drug development

* Stocks still have downside risks due to coronavirus

By Stanley White

TOKYO, March 5 (Reuters) - Japanese shares rose on Thursday,

tracking Wall Street as Democratic presidential candidate Joe

Biden's strong showing in primaries and positive U.S. economic

data bolstered investor sentiment amid increasing cases of the

coronavirus.

The Nikkei index .N225 climbed 1.14% to 21,339.71 by 0142

GMT, with healthcare and industrial stocks leading the advance.

Biden is now leading the race for the Democratic Party's

presidential nomination, and his economic policies are

considered more benign than his main rivals. Investor sentiment also improved after U.S. data on

Wednesday showed strong private sector hiring and robust growth

in the services sector. However, many investors warned that the recent equity

sell-off due to the global spread of the coronavirus could

quickly return because the flu-like illness has not yet been

contained.

The virus emerged in China late last year but has since

spread to dozens of countries and caused more than 3,000 deaths.

Infections in Japan have topped 200, with six deaths. That

excludes more than 700 cases and five more deaths from the

quarantined cruise liner.

There were 166 advancers on the Nikkei index against 51

decliners on Thursday.

Takeda Pharmaceutical Co Ltd 4502.T rose 3.67% after the

company said it was developing a drug for the virus. This helped

other healthcare stocks gain as well. The largest percentage gainers in the index were food and

drug maker Meiji Holdings Co Ltd 2269.T , up 4.39%, followed by

Hitachi Construction Machinery Co Ltd 6305.T , gaining 4.16%,

and drug maker Kyowa Kirin Co Ltd 4151.T , up by 3.91%.

The largest percentage losers in the index were materials

producer Teijin Ltd 3401.T , down 1.55%, followed by Nissan

Motor Co Ltd 7201.T , losing 1.43%, and Suzuki Motor Corp

7269.T , down by 1.24%.

Some traders now await the U.S. non-farm payrolls data due

on Friday to check the health of the world's largest economy.

The broader Topix index .TOPX rose 0.95% to 1,516.69.

The volume of shares traded on the Tokyo Stock Exchange's

main board .TOPX was 0.44 billion, compared to the average

1.36 billion in the past 30 days.

(Editing by Subhranshu Sahu)

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