TOKYO, Jan 25 (Reuters) – Japanese shares rose on Monday, reversing an early loss, led by tech and pharma stocks as U.S. futures soared in hopes that lawmakers would going beyond a major economic stimulus to revive growth in the world’s largest economy.
The Nikkei share gained 0.67% at 28.822.29, after declining 0.2% earlier, while the Topix overall went up 0.29% to 1,862.00.
“U.S. markets moved erratically last week but investors were relieved this morning after seeing a rise in U.S. futures,” said Masahiro Ichikawa, chief market strategist, Sumitomo Mitsui DS Asset Management.
Asian shares also rose as concerns about rising COVID-19 cases and delays in vaccine supply reduced in anticipation of a $ 1.9 trillion fiscal stimulus plan to help the U.S. economy recover.
U.S. lawmakers from both parties said they had agreed that giving the COVID-19 vaccine to Americans should be a priority, but some Republicans opposed such a tough package just a month after for Congress to pass a $ 900 billion relief measure.
Tech shares go up in Japan, with Toshiba surrendering 16.88% after the Tokyo Stock Exchange agreed Friday to return the electronics and infrastructure conglomerate to the first segment of the course.
Alps electronics manufacturer Alpine jumped 6.12%, making it the biggest winner on the Nikkei index, while camera maker Nikon rose 5.17%.
Drug dealers rose to renewed hopes about the release of the COVID-19 vaccine. Takeda Pharmaceutical added 3.54% after Japan’s largest drug retailer last week began researching the country’s Moderna Inc coronavirus vaccine.
Eisai rose 2.8% and Astellas Pharma gained 2.1%.
Sumitomo Corp rose 1.55% as local media reported that the trading house would stop investing in new oil development projects as it moved away from fossil fuel industries. (Reporting by Junko Fujita; Editing by Amy Caren Daniel)