Tokyo shares end at 2-month peak as lockdown-exit hopes spur cyclicals

SYDNEY, May 11 (Reuters) - Japanese stocks closed at a
two-month high on Monday as more countries prepare to reopen
businesses from coronavirus-induced lockdown and on positive
cues from Wall Street.
The benchmark Nikkei average .N225 gained 1.1% to
20,390.66 points, its highest closing since March 6, with
cyclical sectors leading the rally.
The broader Topix .TOPX advanced 1.5% to 1,480.62, also
its highest close in two months, with all but five of the 33
sector sub-indexes on the Tokyo exchange finishing higher.
Highly cyclical air transport .IAIR.T , sea transport
.ISHIP.T and iron and steel .ISTEL.T were the top three
performing sectors on the main bourse.
"Today's rally was led by some of the biggest laggards
during the coronavirus sell-off such as the airlines sector,"
said Yasuo Sakuma, chief investment officer at Libra
Investments.
Indeed, Japan Airlines 9201.T soared 9.8% and ANA Holdings
9202.T surged 10.6%.
Sakuma on Monday added long positions in a part-time jobs
site operator that was also hit by the outbreak. "I think this
trend will be accelerated if the government decides to ease
coronavirus restrictions in some areas this Thursday."
Japan last week extended the nationwide state of emergency
until the end of May, saying it would reassess the situation on
May 14 and possibly lift the measures earlier for some
prefectures. Global stocks have been rebounding since late March as
economic activities restarted businesses from the lockdown put
in place to curb the spread of the pandemic.
Among other nations, however, South Korea warned of a second
wave of the new coronavirus as infections rebounded to a
one-month high, while new infections accelerated in Germany.
Wall Street's three major indexes jumped on Friday after the
April non-farm payrolls report proved dire, but not quite as
awful as analysts had feared. .N
E-mini futures for the S&P 500 index ESc1 rose as much as
0.6% in Asian trade.
Investors seem to be determined to focus on the positive as
many cheered companies that could provide some sort of earnings
outlook.
Sumco Corp 3436.T leaped 5.8% even after the semiconductor
silicon-wafer producer reported a 41.2% drop in operating profit
for the January-March quarter and forecast a 29.6% fall in the
January-June period. Minebea Mitsumi Inc 6479.T jumped 6.1% as the industrial
equipment maker managed to provide a profit outlook for the year
through March 2021. Elsewhere, Miraca Holdings Inc 4544.T closed up 19.7% to
its daily limit high on hopes that the government could approve
the company's test kits that can detect coronavirus antigens in
about 15 minutes as early as next week.