Nikkei rises thanks to stimulus hopes

US, WASHINGTON (ORDO NEWS) — The Nikkei rose on the Tokyo Stock Exchange on Friday and made the biggest weekly gain of all time as policymakers worldwide launched a package of stimulus efforts to reduce economic damage to the Coronavirus.

The Nikkei rose 3.9 percent to 19,389.43 points, to offset most of its 4.5 percent loss on Thursday. The index jumped more than 200 points in the last minute of trading due to purchases by idle investors to reinvest the expected dividends.

In the week, the index rose 17.1 percent, but it is still down 18 percent since the beginning of the year after the massive spread of the virus, which triggered a global economic crisis and a decline in financial markets.

Government officials and lawmakers say Prime Minister Shinzo Abe is expected to order his cabinet to devise an economic package with spending of $ 135 billion or more.

Wall Street’s main indicators rose nearly 6 percent on Thursday, as the weekly record data for US jobless claims fell short of the worst investor expectations and the focus remained on an unprecedented $ 2 trillion economic stimulus package.

The broader Topix index advanced 4.3 percent to 1459.49 points, also supported by massive purchases by inactive investors.

All 33 sub-sector indices rose on the Tokyo Stock Exchange, with one exception, while the two most defensive sectors, electricity, gas and pharmaceuticals were among the top three performing sectors.

Investors bought shares of semiconductor-related companies, Tokyo Electron jumped 5.1 percent, and Shin-Etsu Chemical shares rose 6.1 percent after Micron Technology, a US chip maker, expected revenue for the current quarter that exceeded analyst estimates.

Softbank Group added 2.9 percent, a day after it fell 9.4 percent, due to Moody’s lowering the company’s rating.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.