Japanese shares rise as Tokyo lowers virus alert, U.S. futures gain

TOKYO, Sept 11 (Reuters) - Japanese shares inched higher on
Friday, tracking strength in U.S. stock futures and as the
capital city of Tokyo dropped its coronavirus alert by one notch
from the highest level as COVID-19 cases continue to trend down.
The benchmark Nikkei share average .N225 was up 0.31% at
23,308.47 by midday break, with 145 advancers against 70
decliners. For the week, the index has gained 0.41%.
The broader Topix .TOPX gained 0.53% to 1,633.45, with all
but five of the 33 sector sub-indexes on the Tokyo exchange
trading higher. The index is set for its third weekly gain.
Tokyo had raised the alert to "red" in July on the advice of
experts following a rise in infections. The city's daily cases
have gradually declined since hitting a peak of 472 cases in
early August, with 276 new cases reported on Thursday.
Japanese stocks were lifted on Friday by gains in U.S.
futures in Asian trade, with e-mini futures for the S&P 500
EScv1 and Nasdaq futures NQc1 rising more than 0.6% each.
The market initially opened softer, tracking overnight
losses in Wall Street, as heavyweight U.S. tech stocks resumed
their decline following a sharp rebound on Wednesday.
Shippers .ISHIP.T , precision machineries .IPRCS.T and
pharmaceuticals .IPHAM.T were the three top performers on the
main bourse.
Market participants said active buying on special quotation
fixing to settle September Nikkei futures and options also
contributed to the rebound into positive territory.
The closely watched settlement price, known in Japan as the
special quotation, or "SQ," is calculated from the opening
prices of the 225 shares in the Nikkei share average on the
second Friday of the month.
Tokyo Dome Corp 9681.T slipped 2.27% after the company
forecasts a net loss of 18 billion yen ($169.56 million) for the
year through Jan. 31, 2021. ($1 = 106.1600 yen)