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Japan stocks rise by most in one month, caution about virus remains

Published 05/03/2020, 07:55
Updated 05/03/2020, 08:00
© Reuters.  Japan stocks rise by most in one month, caution about virus remains
JP225
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TOPX
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4151
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1803
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7205
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4502
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2269
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6501
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5703
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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 posted their

biggest one-day percentage gain in a month on Thursday, tracking

a surge on Wall Street following strong showing by Joe Biden in

Democratic primaries and robust data that lifted sentiment amid

a rise in coronavirus cases.

The Nikkei index .N225 ended 1.09% higher at 21,329.12,

boosted by the healthcare and industrial sectors.

Former Vice President Biden is now leading the race for the

Democratic Party's presidential nomination, and his economic

policies are considered more benign than main rival Bernie

Sanders. U.S. data that showed strong private sector hiring and

robust growth in the services sector added to the upbeat mood.

However, many investors warned that the recent 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 some 80 countries, with infections in Japan topping

200 and deaths totalling six. That excludes more than 700 cases

and five more deaths from a quarantined cruise liner.

"Japanese stocks are very close to book value, so you really

can't sell any further from here," said Takashi Hiroki, chief

strategist at Monex Securities in Tokyo.

"However, a strong rally is unlikely unless we see a lot

more positive news about the state of the virus in Japan."

There were 137 advancers on the Nikkei index against 79

decliners on Thursday.

Takeda Pharmaceutical Co Ltd 4502.T rose 3.51% after the

company said it was developing a drug for the virus, boosting

shares in peers. The largest percentage gainers were drugmaker Kyowa Kirin Co

Ltd 4151.T up 4.51%, followed by food and drugmaker Meiji

Holdings Co Ltd 2269.T gaining 4.23%. Industrial conglomerate

Hitachi Ltd 6501.T advanced 4.18%.

The largest percentage losers were aluminium maker Nippon

Light Metal Holdings Co Ltd 5703.T , down 2.63%. Construction

company Shimizu Corp 1803.T slipped 2.1%, while truck maker

Hino Motors Ltd 7205.T dropped 1.9%.

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

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

The broader Topix index .TOPX rose 0.88% to 1,515.71.

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

main board .TOPX was 1.38 billion, compared to the average

1.36 billion in the past 30 days.

(Editing by Subhranshu Sahu and Sriraj Kalluvila)

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