Japan Nikkei closes at 2-year high

Japan share market finished session higher on Thursday, 05 November 2020, mirroring firm Wall Street overnight cues as U.S. Democrat candidate Joe Biden inched closer to a win in the U.S. presidential election.

At closing bell, the 225-issue Nikkei Stock Average advanced 410.05 points, or 1.73%, to 24,105.28, marking its highest closing level since Oct. 3, 2018. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 22.69 points, or 1.39%, to 1,649.94.

Total 21 issues of 33 industry category of Topix index ended into black territory, with Pharmaceutical, Precision Instruments, Information & Communication, Electric Appliances, Services, Real Estate, and Foods issues being notable gainers, while Mining, Iron & Steel, Insurance, and Marine Transportation issues were notable losers.

Tokyo shares rocketed from the outset, buoyed by overnight gains in their U.S. peers as traders react to the outcome of the US election. While the final results are not out, investors have already started pricing-in a Joe Biden victory. They also see a deadlock in Washington as Republicans are set to control the senate. In addition the Nikkei is also rising as the Japanese earning season continue.

CURRENCY NEWS: The Japanese yen appreciated against greenback as investors fled to the perceived safety of the yen amid concerns over a potential delay in the U.S. presidential election results, as the campaign of the incumbent Donald Trump requested a recount of the Wisconsin result and filed lawsuits in Pennsylvania, Michigan and Georgia over vote counting. The Japanese yen traded at 104.28 per dollar after strengthening yesterday from levels above 104.8 against the greenback.

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