Japan Market extends gain on Wall Street rebound

Japan share market finished higher for second straight session on Friday, 26 March 2021, as investors scooped up oversold stocks, thanks to increased optimism for the outlook of the U.S. economy and yen depreciation to mid-109 level against greenback.

At closing bell, the 225-issue Nikkei Stock Average advanced 446.82 points, or 1.56%, to 29,176.70. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 28.61 points, or 1.46%, to 1,984.16. For the week, the Nikkei shed 2% and the Topix was down 1.4%.

All the 33 sector sub-indexes on the Tokyo exchange traded higher, with Marine Transportation, Precision Instruments, Land Transportation, Rubber Products, Pharmaceutical, Air Transportation, and Transportation Equipment issues being notable gainers.

Risk appetite made a comeback across the world on economic-recovery bets after US President Joe Biden announced a new goal of administering 200 million coronavirus vaccinations within his first 100 days in office. The new goal is double the 100 million shots in 100 days that Biden initially pledged and was reached before his 60th day in office.

Federal Reserve Chairman Jerome Powell acknowledged Thursday that fiscal help from Congress and accelerated vaccine distribution has allowed the U.S. to recover faster than expected.

The US Labour Department data showed claims for unemployment benefits dropped to a one-year low last week, a sign that the US economy is on the verge of stronger growth as the public health situation improves and temperatures rise.

The largest percentage gainers on the index were IHI up 5.1%, followed by Aeon's 4.8% gain. The biggest percentage decliners on the index were Citizen Watch, down 1.8%, followed by Showa Denko losing 1.7% and Tokai Carbon falling 1.5%.

CURRENCY NEWS: The Japanese yen traded at 109.38 per dollar, having weakened from levels below 108.6 against the greenback seen earlier this week.

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