Japan Market rises on weaker yen

Japan share market finished higher for second straight session on Wednesday, 12 August 2020,as risk sentiment boosted by yen depreciation to upper 106 levels against greenback and on rising hopes of vaccines against COVID-19. However, market gains were limited on renewed pessimism about a new pandemic aid bill after Republican Senate leader Mitch McConnell poured cold water on prospects for a deal.

At closing bell, the 225-issue Nikkei Stock Average advanced 93.72 points, or 0.41%, to 22,843.96. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 12.04 points, or 1.18%, at 1,605.53.

Total 32 issues of the 33 industry category of Topix index advanced into positive territory, with Construction, Metal Products, Transportation Equipment, Glass & Ceramics Products, Mining, Securities & Commodities Futures, and Textiles & Apparels issues being notable gainers.

Hopes of vaccine development prompted some investors to buy back battered stocks of companies hit hardest by the virus. President Vladimir Putin said on Tuesday that Russia had become the first country to grant regulatory approval to a COVID-19 vaccine after less than two months of human testing. While Moscow's decision raised some eyebrows, the news lifted hope some of the vaccines currently in development would become available earlier than expected.

Market sentiment was cautious due to a stalemate in talks over additional U.S. economic stimulus. Many investors are closely watching debates in Washington about economic stimulus, because Republicans and Democrats are struggling to agree the details of a package needed to support the world's largest economy. Barring a bipartisan deal on stimulus, the U.S. economy could be left with measures U.S. President Donald Trump called for on Saturday through executive orders to bypass Congress.

The biggest percentage gainers in the index were environmental plant manufacturer Ebara Corp, up 10%, followed by precision parts maker NSK Ltd, gaining 5.13%, and Hitachi Construction Machinery Co up by 5%. The top percentage losers in the index were Internet commerce firm Rakuten Inc, down 6.9%, followed by drugs maker Eisai Co, losing 4.7%, and Japan Steel Works, down by 3.9%.

CURRENCY: The dollar gained to 106.72 yen in Asian afternoon trade from 106.50 yen in New York late Tuesday and 106.15 yen in Tokyo.

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