Tokyo’s Nikkei surge 8% after US stimulus deal

Tokyo, March 25 (AFP/APP): Tokyo stocks surged more than eight percent Wednesday, marking their best percentage gain since 2008 after US lawmakers agreed a $2-trillion coronavirus rescue package and on relief that the Tokyo Olympics was postponed, not canceled.

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.


Tokyo stocks open lower on virus worries, strong yen