TOKYO, March 8 (Reuters) - Japanese shares rose on Monday as
the central bank governor's remarks eased speculation that
yields on government bonds would be allowed to rise, while
optimism over a $1.9 trillion U.S. pandemic relief plan also
underpinned sentiment.
The Nikkei share average .N225 rose 0.66% to 29,050.17 by
0218 GMT, while the broader Topix .TOPX rose 0.82% to
1,911.68.
Bank of Japan Governor Haruhiko Kuroda said on Friday he saw
no need to widen an implicit band set for its long-term interest
rate target at a policy review this month, stressing the need to
keep borrowing costs low to support a pandemic-ravaged economy.
Kuroda's remarks are having a strong impact on the stock
market, said Norihiro Fujito, chief investment strategist,
Mitsubishi UFJ Morgan Stanley Securities.
"Investors were prepared to sell bonds at a loss and
compensate that loss with a gain from selling stocks. But
Kuroda's view has completely changed that direction," Fujito
said.
The rise in Japanese shares also followed the passing of the
COVID-19 stimulus bill by the U.S. Senate and a surprisingly
strong U.S. payrolls report that augured well for a global
economic rebound. MKTS/GLOB
Takeda Pharmaceutical 4502.T jumped 4.18% after the
drugmaker said it had sought approval for the use of Moderna 's
MRNA.O COVID-19 vaccine. Japan's biggest steelmaker, Nippon Steel Corp 5401.T ,
advanced 4.08% after the company said it would further reduce
capacity due to falling domestic demand and intensifying
competition from China.
Japan's biggest oil and gas explorer, Inpex 1605.T , gained
2.5% as oil prices rose to their highest levels in more than a
year. The stocks that gained the most among the top 30 core Topix
names were Takeda, followed by Mitsubishi UFJ Financial Group
8306.T , which rose 3.31%.
The underperformers among the Topix 30 were Nidec Corp
6594.T , which fell 3.91%, followed by Nintendo 7974.T ,
losing 2.74%.