Tokyo Stocks Close Higher As Traders Eye New Stimulus

Tokyo, (UrduPoint / Pakistan Point News - 27th May, 2020 ) :Tokyo stocks closed higher on Wednesday as Japan's government prepared a fresh injection of cash to stimulate the country's coronavirus-hit economy.

The benchmark Nikkei 225 index was up 0.70 percent, or 148.06 points, at 21,419.23 at the close, while the broader Topix index rose 0.96 percent, or 14.74 points, to 1,549.47.

"Expectations that the government's second supplementary budget will support the economy and rallies in US shares are working as a catalyst" for rises in Japanese stocks, said Okasan Online Securities chief strategist Yoshihiro Ito.

Worries over simmering rows between the US and China -- fuelled by US President Donald Trump's barracking of Beijing over its role in the pandemic, and made worse this week by China looking to tighten its grip on Hong Kong -- were weighing on sentiment, he added.

Prime Minister Shinzo Abe's government is widely expected to approve a second extra budget worth nearly $300 billion for measures to ease the pain from the coronavirus pandemic.

The Dollar fetched 107.53 Yen in late Asian trade, against 107.54 yen in New York.

In Tokyo, major exporters were higher, with Honda gaining 2.48 percent to 2,811.5 yen, Toyota advancing 1.37 percent to 6,740 yen, and industrial robot maker Fanuc rallying 2.81 percent to 19,025 yen.