Japan Nikkei extends gains on positive vaccine news

Japan share market finished session higher on Tuesday, 21 July 2020, thanks to the renewed popularity of technology-oriented issues on tracking their U.S. peers higher overnight. Meanwhile, hopes for the development of a COVID-19 vaccine in Britain which has shown positive results in trials also lifted the market mood.

At closing bell, the 225-issue Nikkei Stock Average added 166.74 points, or 0.73%, to 22,884.22. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 5.71 points, or 0.36%, at 1,582.74.

Total 22 sub-indices of 33 industry category of Topix index fell into red territory, with Iron & Steel, Electric Power & Gas, Construction, Marine Transportation, Rubber Products, Wholesale Trade, Insurance, and Banks issues being notable losers, while Services, Pharmaceutical, Electric Appliances, and Information & Communication issues were notable gainers.

Tokyo shares were firm from the outset as the tech-heavy Nasdaq index's rise to a record close helped lift Japanese technology stocks. Overall market sentiment also improved after a team of scientists at Oxford University said their experimental coronavirus vaccine has been shown in an early trial to induce an immune response. The positive results of recent tests in the United States and Britain provided something for the market to look forward to, to help an economic recovery.

Shares of chip-related issues ended stronger. Sony was up 130 yen, or 1.6%, at 8,379 yen and Sumco soared 69 yen, or 4.2%, to 1,695 yen. Tokyo Electron jumped 680 yen, or 2.3%, to 29,800 yen.

ECONOMIC NEWS: Japan Consumer Price Inflation Up 0.1% On Year In June- Japan consumer prices were up 0.1% on year in June, the Ministry of Internal Affairs and Communications said on Tuesday, unchanged from the May reading. Core CPI, which excludes volatile food prices, was unchanged on an annual basis following the 0.2% decline in the previous month. Individually, prices were higher annually for food, housing, furniture, clothing, medical care and recreation. They were lower for fuel, communications and education. On a monthly basis, overall and core CPI both added a seasonally adjusted 0.1%.

CURRENCY: The Japanese yen traded at 107.31, weakening from levels near 106.8 seen last week, as demand for safe haven currency dimmed on prospects of a deal by European Union leaders to jointly fund recovery of their economies and hopes for a coronavirus vaccine.

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