SYDNEY, June 3 (Reuters) - Japan's stock benchmark Nikkei advanced to a new three-month high on Wednesday as a rapidly weakening yen and investor fear of missing out a rally boosted automakers and other cyclical sectors.
The Nikkei average .N225 gained 1.2% to 22,581.74 by the midday break, after touching its fresh intraday high since Feb. 25 earlier in the session.
The yen rapidly weakened overnight against both the U.S. dollar and the euro, on optimism the worst of the economic downturn from the COVID-19 crisis is over as well as on hopes of additional support from the European policymakers. dollar/yen JPY=EBS hit a two-month high of 108.850 yen, while the euro/yen hit EURJPY=EBS a 4 1/2-month high of 121.805 yen on early Wednesday.
As a soft yen boosts Japanese manufacturers' profits made abroad when repatriated, automaker stocks attracted buying.
The broader Topix .TOPX rose 0.6% to 1,597.18 by the midday recess, with all but six of the 33 sector sub-indexes on the Tokyo exchange trading higher.
Bucking the overall market, the index of Mothers start-up shares .MTHR retreated 1.9%, after marking its fresh 1 1/2-year high earlier in the session. said the market has been surprisingly resilient to negative news both domestic and international.
In Japan, the Tokyo government issued a stay-home alert on late Tuesday as the country's capital recorded 34 new coronavirus cases, the highest since early May. U.S. President Donald Trump has threatened to use the military to quell spreading protests against racism and police brutality, but Wall Street stocks rallied on Tuesday, reflecting the global investor optimism. .N
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