SYDNEY, July 3 (Reuters) - Japanese stocks ended higher on
Friday as strong U.S. jobs data provided assurance that recovery
in the world's largest economy was well under way, though
investors remained cautious as Tokyo reported a spike in
COVID-19 cases.
The benchmark Nikkei average .N225 rose 0.7% to close at
22,306.48, taking a positive cue from a record surge in U.S.
June payrolls and Wall Street's overnight rally. But for the
week, it was down 0.9%. .N Japan's capital city of Tokyo confirmed more than 100
COVID-19 cases, its highest daily tally in two months, for two
days in a row on Friday. Although chief cabinet secretary said there was no need to
reintroduce a state of emergency, traders said fund managers
were adjusting portfolios for a possible redeployment of
coronavirus-induced restrictions.
Potential beneficiaries of lockdowns or other restrictions
led the gains, with gaming company Nintendo 7974.T advancing
3.6% and medical data platform M3 2413.T jumping 4.5%.
Meanwhile, travel-related ANA Holdings 9202.% and Kyushu
Railway 9142.T lost 1.3% and 1.5%, respectively, while Tokyo
Disney Resort operator Oriental Land 4661.T dropped 1.5%.
The broader Topix .TOPX added 0.6% to 1,552.33, with
one-third of the 33 sector sub-indexes on the Tokyo exchange
finishing lower, however.
Electric power companies came under pressure on media
reports that Japan was looking to suspend or close up to 100
older, inefficient coal-fired power plants by around 2030.
Tokyo Electric Power 9501.T and Shikoku Electric
Power 9507.T fell 1.5% and 1.4%, respectively.
The index of Mothers start-up market .MTHR rebounded 3.1%,
partially clawing back from a 5.0% slide on Thursday.
Japan Exchange Group's data showed foreigners have sold
Japanese stocks for a third straight week. BlackRock Investment Institute upgraded Japanese equities to
neutral from underweight earlier this week. "The combination of domestic policy support, a relatively
benign virus experience, and gearing into the global economic
recovery can translate into performance," said Ben Powell, chief
Asia investment strategist.
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Foreign flows into Japanese stocks https://tmsnrt.rs/3dWgFyh
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