Japan Stocks rebound on bargain buying

Japan share market finished session higher on Wednesday, 03 March 2021, as sentiment was underpinned by declining domestic COVID-19 cases and news reports that drugmaker Takeda is planning to file for Japanese regulatory approval as early as this week for a coronavirus vaccine developed by U.S. biotech startup Moderna Inc. Gainers were led by iron and steel, nonferrous metal and marine transportation issues.

At closing bell, the 225-issue Nikkei Stock Average rose 150.93 points, or 0.51%, to 29,559.10. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 9.69 points, or 0.51%, to 1,904.54.

Automakers were among main winners, with Toyota rising 0.6% and Honda gaining 3.6%. Nissan soared 4.2%, after a US father-son pair accused of helping former boss Carlos Ghosn in his audacious escape from Japan arrived in Tokyo late Tuesday, having lost their battle against extradition.

Takeda surged 3.2% as market players reacted positively to the news regarding the application for approval for the vaccine.

Household goods retailer Ryohin Keikaku advanced 2.24%, after announcing strong same-store sales in February.

ECONOMIC NEWS: Japan Jibun Services Sector Contracts In February -Japan services sector continued to contract in February, with a services PMI score of 46.3, the latest survey from Jibun Bank revealed on Wednesday. That's up from 46.1 in January, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, output and new orders contracted, although employment levels rose for the first time in a year. Business optimism hit its highest mark since 2018 as firms cited hopes that the pandemic would recede and trigger a broad recovery in demand from the domestic and foreign markets. The survey also showed that the composite index rose from 47.1 to 48.2 in February.

CURRENCY NEWS: The Japanese yen traded at 106.86 per dollar, still weaker than levels below 105.7 against the greenback seen last week.

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