Japan Stocks gains on hopes for U.S. stimulus package

Japan share market finished session higher on Monday, 19 October 2020, as market mood was lifted up a weaker yen against greenback and amid hopes for a U.S. virus-linked stimulus package.

At closing bell, the 225-issue Nikkei Stock Average added 260.50 points, or 1.11%, to 23,671.13. The broader Topix index of all First Section issues on the Tokyo Stock Exchange climbed up 20.29 points, or 1.25%, to 1,637.98.

All 33 industry category of Topix index ended into black territory, with Marine Transportation, Rubber Products, Iron & Steel, Nonferrous Metals, Real Estate, Air Transportation, Warehousing & Harbor Transportation Services, and Textiles & Apparels issues being notable gainers.

Market commenced trading with firm footing on optimism for a new US stimulus package after House Speaker Nancy Pelosi set a Tuesday deadline for a pact to be hammered out, while President Donald Trump urged his Republican party to offer more than the $1.8 trillion they have put forward, adding that he would be willing to go higher than the Democrats' $2.2 trillion proposal. Pelosi and Treasury Secretary Steven Mnuchin held talks over the weekend and planned more on Monday.

Boosting overall sentiment, drugmaker Pfizer Inc said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year.

ECONOMIC NEWS: Japan Posts Y674.978 Billion Surplus In September-- Japan posted a merchandise trade surplus of 674.978 billion yen in September, the Ministry of Finance said on Monday, up from the 248.3 billion yen surplus in August. Exports were down 4.9% on year to 6.055 trillion yen following the 14.8% slide in the previous month. Imports sank an annual 17.2% to 5.380 trillion yen versus expectations for a decline of 21.4% following the 20.8% drop a month earlier.

CURRENCY NEWS: The Japanese yen traded at 105.37 per dollar after seeing levels below 105.3 against the greenback last week.

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