Tokyo shares hit 3-1/2-month high on recovery hopes

  • Reuters
  • Stock Market News
Tokyo shares hit 3-1/2-month high on recovery hopes
Credit: © Reuters.

SYDNEY, June 5 (Reuters) - Japanese stocks advanced to a 3-1/2-month high on Friday, tracking stronger U.S. futures, as sustained optimism about an economic rebound from a coronavirus-driven slump helped offset early profit-taking.

The benchmark Nikkei average .N225 reversed early losses to end 0.7% higher at 22,863.73, its highest closing level since Feb. 21.

E-Mini futures for the S&P 500 ESc1 climbed 0.8% by late Asian trade, providing a boost to Japanese stocks, which had seen some profit-taking in the morning session.

For the week, the Nikkei gained 4.5% - its third straight weekly gain.

The broader Topix .TOPX rose 0.5% on Friday to 1,612.48, its highest closing since Feb.21. The index also marked its third straight weekly gain, rising 3.1%.

All but eight of the 33 sector sub-indexes on the Tokyo exchange finished higher, with air transport .IAIRL.T being the top-performing sector, up 8.2%, after U.S.-listed airline stocks jumped overnight. .N Japan Airlines 9201.T soared 9.7% and ANA Holdings 9202.T surged 7.1%.

Reflecting continued confidence in the revival of the global economy, the safe-haven yen weakened further, with the dollar/yen JPY=EBS hitting a fresh two-month high of 109.38 yen and the euro/yen touching EURJPY=EBS a 13-month high of 124.43 yen in Asian trade. FRX/

As a weak yen boosts Japanese manufacturers' profits made abroad when repatriated, shares of export-oriented automakers were in demand. Mazda Motor 7261.T leaped 5.9%, while Nissan Motor 7201.T and Honda Motor 7267.T gained 4.8% and 3.8%, respectively.

Longer-term U.S. Treasury yields jumped overnight, providing a tailwind for Tokyo-listed financial stocks .IINSU.T .IBNKS.T . Dai-ichi Life Holdings 8750.T advanced 6.8% and Mitsubishi UFJ Financial Group (MUFG) 8306.T climbed 2.6%. US/N

Toshiba Corp 6502.T rose 3.4% after the company's earnings. The firm said strong orders for infrastructure projects and cost cuts will help partly offset an impact from the COVID-19 outbreak.

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