Nikkei gains on hopes of economic rebound; Mothers start-up index dives

SYDNEY, July 2 (Reuters) - Japanese shares climbed a tick
higher to end firmer on Thursday on subtle signs that the global
economy was emerging from the coronavirus lockdown, though
investors maintained a cautious stance after Tokyo reported a
spike in COVID-19 cases.
The benchmark Nikkei average .N225 edged up 0.1% to
22,145.96, partially clawing back from the previous session's
losses of 0.8%, with cyclical stocks lifting the index.
Soichiro Matsumoto, chief investment officer Japan at Credit
Suisse, called the current Nikkei's level of around 22,000 "a
pretty good level" for many investors. He expects Tokyo shares
to remain range-bound, saying there's not much upside left in
the medium term.
Takashi Maruyama, head of equities at Fidelity International
Japan, sees that the downside is also limited as "there is no
alternative to stocks" for many institutional investors.
On Wall Street, the S&P 500 .SPX and Nasdaq .IXIC
indexes ended higher on Wednesday as increasing optimism for a
safe and effective coronavirus vaccine eased concerns that
another round of business lockdowns was likely. .N
On the domestic front, however, Japan's capital city of
Tokyo confirmed more than 100 coronavirus infections, the
highest daily tally in two months, which dampened investor
sentiment. The broader Topix .TOPX rose 0.3% to 1,542.76, with about
three-thirds of the 33 sector sub-indexes on the Tokyo exchange
finishing higher.
Highly cyclical air transport .IAIRL.T , sea transport
.ISHIP.T and transport equipment .ITEQP.T indexes were among
the top performers on the main bourse.
Toyota Motor 7203.T advanced 1.8%, one day after U.S.
electric carmaker Tesla TSLA.O overtook the company to become
the highest-valued automaker in terms of market capitalization.
Bucking the overall firmness, the index of Mothers start-up
market .MTHR slumped 5% to hit its lowest closing level since
May 28, with biotech AnGes 4563.T nose-diving 11.9%.
Large-cap stocks outperformed the small-cap shares, with the
Topix Large index .TOPXL gaining 0.4% and the Topix Small
.TOPXS falling 0.8%.