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Japanese shares rise on upbeat corporate earnings, U.S. stimulus

· 02/04/2021 21:27
Japanese shares rise on upbeat corporate earnings, U.S. stimulus

- Japanese shares rose on Friday, following Wall Street's rally overnight, as strong earning results of domestic firms and a large U.S. stimulus program boosted market sentiment.

Nikkei share average .N225 gained 1.06% to 28,641.72 by 0152 GMT, while the broader Topix .TOPX gained 1.03% to 1,884.38.

The S&P 500 and Nasdaq posted record closing highs overnight, as Democrats pushed ahead with U.S. President Joe Biden's proposed $1.9 trillion stimulus plan without bipartisan support. nL1N2KA1PF

"A bigger economic stimulus package in the U.S. is good for the global economy and that optimism is lifting economic-sensitive shares in Japan," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

"Investors also have started buying the virus-beaten shares ahead of the rollout of COVID-19 vaccines in Japan."

Automakers are leading Nikkei index's gain, with Mazda Motor 7261.T jumping 18.52% after the automaker cut its loss forecasts. nXB0PZU2FD

Mitsubishi Motor 7211.T gained 13.78% and Subaru 7270.T rose 8.8%.

NTT Data 9613.T jumped 9.66% after Nomura Securities raised its target price to 1,960 yen from 1,560 yen.

Railway companies continued their rally, with Central Japan Railway 9022.T rising 4.0% and West Japan Railway 9021.T increasing 3.94%.

Takeda Pharmaceutical 4502.T edged up 0.46% after the drug maker said its nine-month profit more than doubled from a year earlier.

Tokyo Rope 5981.T surged 7.69% as a steel maker opposed a bid by Nippon Steel 5401.T, which is trying to boost its stake in the smaller affiliate.

Japan Asia Group 3751.T jumped 6.9% after an activist fund launched a bid to buy the energy and environment firm which has agreed to be bought by Carlyle Group CG.O. nL1N2KA0QG

(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)

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