Singapore markets closed

Tokyo's Nikkei surges 8% after US stimulus deal

Tokyo stocks surged over eight percent Wednesday, in their best percentage gain since 2008, on news of a $2-trillion US coronavirus rescue package and relief that the Tokyo Olympics was postponed, not cancelled.

The benchmark Nikkei 225 index, which soared more than seven percent on Tuesday, added another 8.04 percent, or 1,454.28 points, to 19,546.63.

The broader Topix rose 6.87 percent, or 91.52 points, to end at 1,424.62.

"The Tokyo market took a positive lead from Wall Street and maintained the momentum for the rest of the day," noted Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"Buy-back has accelerated as investors welcomed a series of policies announced by each country, notably the US," he told AFP.

On Tuesday, the Dow Jones index surged 11.4 percent, its best gain since 1933, boosted by signs Congress was closing in on a rescue package for the virus-wracked US economy.

The Senate and White House have now reached a deal on a $2 trillion stimulus package, a top Republican lawmaker said early Wednesday.

Horiuchi of IwaiCosmo said "players are taking the news of the Olympics' postponement positively. It's much better than a cancellation".

But he added "the outlook for the market and the global economy remains uncertain as there is no sign of an end to the outbreak."

"Volatile trading is expected to continue for the time being," he said.

The dollar was trading at 111.15 yen against 111.32 yen in New York Tuesday afternoon.

Major ad companies rose sharply on the Olympics postponement, with Dentsu jumping 11.66 percent to 2,460 and Hakuhodo up 10.55 percent at 1,163 yen.

SoftBank Group added 9.99 percent to 4,170 yen after sharp rallies in the past days on a stock buy-back scheme.

Toyota climbed 10.65 percent to 6,919 yen after the auto giant announced a capital tie-up with leading telecom carrier NTT, which rose 2.68 percent to 2,503 yen.