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

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.