Japan stocks rise on U.S. stimulus, vaccine hopes; Sharp shares drop

Published 28/12/2020, 03:32
Updated 28/12/2020, 03:36
© Reuters.

By Stanley White
TOKYO, Dec 28 (Reuters) - Japanese shares rose in
holiday-thinned trade on Monday as investors continued to bet
that U.S. fiscal stimulus and coronavirus vaccinations will
quicken the global economic recovery.
The Nikkei 225 Index .N225 rose 0.35% to 26,750.62 by 0200
GMT. The broader Topix .TOPX advanced by 0.26% to 1,783.07.
Healthcare, utilities, and technology stocks rose on
expectations that the earnings outlook will improve after a
tumultuous year marred by the coronavirus outbreak.
Bucking the positive mood, Sharp Corp 6753.T tumbled by
3.68% after saying it suspects one of its subsidiaries used
improper accounting techniques. U.S. President Donald Trump signed a $2.3 trillion financial
aid and spending bill after initially refusing to approve the
legislation, which restores unemployment benefits to millions
and averts a partial federal government shutdown. Europe launched a mass COVID-19 vaccination drive on Sunday.
Vaccinations have also begun in Britain and the United States,
raising hope that major economies can shake off the drag caused
by the spread of the coronavirus. "Given the economic stimulus that has come from Japan,
Europe, and the United States, it is possible that the global
economy will recover faster than expected next year, but this is
based on the assumption that vaccinations proceed smoothly,"
analysts at Daiwa Securities wrote in a research memo.
The stocks that gained the most among the top 30 core Topix
names were Murata Manufacturing Co Ltd 6981.T , up 2.15 %,
followed by SoftBank Group Corp 9984.T rising 1.96%.
The underperformers among the Topix 30 were Takeda
Pharmaceutical Co Ltd 4502.T , down 1.20%, followed by Fanuc
Corp 6954.T losing 0.46%.
There were 102 advancers on the Nikkei index against 111
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.41 billion, compared with the average
of 1.24 billion in the past 30 days.

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