Nikkei rises on virus drug hopes, auto stocks surge

  • Reuters
  • Stock Market News
Nikkei rises on virus drug hopes, auto stocks surge

TOKYO, July 13 (Reuters) - Japanese shares rose on Monday, tracking Wall Street's rally on Friday as a positive analysis on a potential COVID-19 drug offset investor fears over a surge in virus cases, while auto shares were lifted by upbeat industry data from China.

The benchmark Nikkei share average .N225 gained 1.73% to 22,677.25 by the midday break, rebounding from a one-week low hit on Friday.

On the Nikkei index, there were 214 advancers against 10 decliners.

In the broader market, Topix .TOPX rose 2.02% to 1,566.15 by the recess, with all 33 sector sub-indexes on the Tokyo exchange trading higher.

U.S. stocks gained on Friday as Gilead Sciences Inc 's GILD.O antiviral remdesivir showed reduced risk of death in severely ill COVID-19 patients, but clinical trials were needed to confirm the benefit. Nasdaq posted its sixth record closing high in seven days, up 0.66%, while the Dow and the S&P 500 added 1.44% and 1.05%, respectively.

Highly cyclical iron and steel .ISTEL.T , mining .IMING.T and airlines .IAIRL.T were the three top performers on the main bourse.

Japan's auto stocks performed strong, as the data by China Association of Automobile Manufacturers showed the world's biggest vehicle market expanded by 11.6% in June from a year earlier and registered strong growth for a third consecutive month. Motor Corp 7261.T spiked 8.44%, while Honda Motor Co Ltd 7267.T and Mitsubishi Motors Corp 7211.T gained around 6.20% each.

Bucking the overall gains, Yaskawa Electric Corp 6506.T dropped 2.07% following a 21.6% drop in March-May group operating profit to 6.23 billion yen, that still beat its 4 billion yen forecast made in April.

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