Japan Stocks extend gains

Japan share market finished session higher on Thursday, 03 September 2020, following gains on the Wall Street overnight hopes of more global and domestic economic stimulus. Adding to risk sentiments was official announcement from Japanese Chief Cabinet Secretary Yoshihide Suga for his candidacy to succeed Prime Minister Shinzo Abe on Wednesday.

At closing bell, the 225-issue Nikkei Stock Average advanced 218.38 points, or 0.94%, to 23,465.53. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 7.84 points, or 0.48%, to 1,631.24.

Total 26 issues of the 33 industry category of Topix index ended into black territory, with Securities & Commodities Futures, Metal Products, Chemicals, Textiles & Apparels, Real Estate, and Insurance issues being notable gainers, while Fishery, Agriculture & Forestry, Mining, Marine Transportation, and Oil & Coal Products issues were notable losers.

Tokyo's market commenced trading with strong footing on tracking gains on Wall Street overnight on expectations for progress in the development of COVID-19 vaccines as well as for an additional fiscal stimulus package.

Further strengthening to sentiments was Japanese Chief Cabinet Secretary Yoshihide Suga officially announcing his candidacy to succeed Prime Minister Shinzo Abe on Wednesday. Suga vowed that if chosen, he would continue to push forward with Abe's signature policy mix. The pledge provided investors with a sense of relief that no significant change would be made to the country's major policies, including the Bank of Japan's massive monetary easing program.

Semiconductor-related shares also climbed, with Shin-etsu Chemical, manufacturer of semiconductor wafers, rising 3.7% and small motor maker Nidec gaining 1.8%. Game maker Nintendo rose 1.6%. Fast Retailing rose 3.6% after reporting strong domestic sales for August.

Cable TV operator Sky Perfect JSAT Holdings soared 15.7% after posting a surprise jump in profit, partly due to a fall in costs as the cancellation of various professional sports events led to lower payments for broadcast rights.

CURRENCY: The Japanese yen traded at 106.02 per dollar after seeing levels around 105.5 against the greenback earlier in the week.

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