TSE – Tokyo stocks rise in morning amid hopes for Biden stimulus

TOKYO (Kyodo) — Tokyo stocks gained Thursday morning as hopes grew that newly inaugurated U.S. President Joe Biden will push through a massive economic stimulus package to offset the economic fallout from the coronavirus pandemic.

The 225-issue Nikkei Stock Average rose 204.22 points, or 0.72 percent, from Wednesday to 28,727.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 10.23 points, or 0.55 percent, at 1,859.81.

Gainers were led by information and communication, service, and oil and coal product issues.

The U.S. dollar stayed firm in the mid-103 yen zone, helped by expectations of a U.S. economic recovery under the Biden administration, dealers said.

At noon, the dollar fetched 103.53-54 yen compared with 103.49-59 yen in New York and 103.74-75 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.2125-2129 and 125.54-58 yen against $1.2101-2111 and 125.24-34 yen in New York and $1.2155-2156 and 126.10-14 yen in Tokyo late Wednesday afternoon.

Biden has planned a nearly $2 trillion stimulus package, and on the first day of his presidency, he rolled back some policies of his predecessor Donald Trump including the U.S. withdrawal from the Paris Accord on climate change.

Tokyo stocks were strong from the opening, with the Nikkei rising over 1 percent at one point, after major indexes on Wall Street ended at record highs overnight.

“Some investors, who had been concerned about possible disruptions (by Trump supporters) at the inauguration, were relieved,” said Maki Sawada, a strategist at Nomura Securities’ Investment Content Department.

“Hopes grew that Mr. Biden’s massive stimulus plan will come into effect,” Sawada added.

On the First Section, advancing issues outnumbered decliners 1,301 to 773, while 116 ended the morning unchanged.

Technology issues benefitted from the growing prospects for a recovery in demand for semiconductors following supply disruptions caused by the pandemic.

Silicon wafer maker Sumco advanced 50 yen, or 2.1 percent, to 2,469 yen while electric component maker Taiyo Yuden gained 100 yen, or 1.6 percent, to 6,200 yen.

Panasonic climbed 55.00 yen, or 4.1 percent, to 1,392.50 yen after the electronic conglomerate said it had developed a freezer box for coronavirus vaccines and is aiming to start selling it in the spring.

Advertising giant Dentsu Group jumped 160 yen, or 5.3 percent, to 3,200 yen, following reports that it is considering selling its headquarters building in Tokyo for some 300 billion yen ($2.9 billion).