Japan stocks end higher on hopes of economic rebound

By Stanley White
TOKYO, March 9 (Reuters) - Japanese shares ended higher on
Tuesday as investors bought consumer goods companies and
property developers on expectations that they would benefit from
an economic recovery from the COVID-19 pandemic.
The Nikkei 225 Index .N225 climbed 0.99% to 29,027.94. The
broader Topix .TOPX rose 1.27% to 1,917.68.
Consumer cyclicals and property firms underpinned the gains,
driven by optimism that the sectors would perform better as a
recovery in the domestic economy gathers pace.
Technology shares fell in early trade as some investors
booked profits before the close of the fiscal year on March 31,
but the sector reversed course to end higher in a sign that
overall sentiment remains positive.
"There is some selling in the IT sector, but at the same
time investors are willing to buy the dip for value shares that
are linked to the domestic economy," said Ayako Sera, a market
strategist at Sumitomo Mitsui Trust Bank.
"You can tell that investors are planning for life after the
coronavirus pandemic, but the market is likely to consolidate
around current levels."
Domestic equities have weakened in the past few sessions
after rallying to a more than 30-year high last month, which
some investors said was a sign of excessive froth.
The stocks that gained the most among the top 30 core Topix
names on Tuesday were Honda Motor Co Ltd 7267.T , gaining
3.68%, followed by Astellas Pharma Inc 4503.T , rising 3.64%.
Many exporters got a boost after the yen JPY=D3 fell to a
nine-month low against the dollar. A weaker yen inflates
exporters' earnings when repatriated from overseas.
The underperformers among the Topix 30 were Keyence Corp
6861.T , falling 3.02%, and Nidec Corp 6594.T , which fell
2.91%
There were 182 advancers on the Nikkei index against 41
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.97 billion, compared with the average
of 1.38 billion in the past 30 days.