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Japanese shares soar as U.S. Fed widens corporate bond buying

Published 06/16/2020, 11:13 AM
Updated 06/16/2020, 11:20 AM
© Reuters.
JP225
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TOPX
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7211
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7261
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4666
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7272
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ISHIP.T
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ISTEL.T
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ITEQP.T
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TOKYO, June 16 (Reuters) - Japanese shares gained on
Tuesday, tracking an overnight surge on Wall Street after the
U.S. Federal Reserve widened its corporate bond purchasing
program to support financial markets.
The benchmark Nikkei average advanced 3.32% to 22,244.96
.N225 by the midday break, bouncing back from a near
three-week low hit on Monday.
The Nikkei futures JNMcm1 extended gains by another 0.5%
during the midday recess, after a Bloomberg report https://www.bloomberg.com/news/articles/2020-06-16/trump-team-weighs-1-trillion-for-infrastructure-to-spur-economy
said U.S. President Donald Trump is considering $1 trillion
infrastructure spending to bolster the economy, and the Bank of
Japan maintained its policy stance.
Shares of highly cyclical shippers, steelmakers and
automakers were the top three performing sector subindexes.
All three major U.S. stock indexes closed higher on Monday
after the Fed announced changes to its corporate bond buying
program, applying an indexing approach to its secondary market
corporate credit facility. While investors remained cautious amid resurging cases of
coronavirus infections, the Fed's move boosted risk sentiment.
On the Nikkei index, there were 222 advancers
against three decliners.
Shippers .ISHIP.T and steelmakers .ISTEL.T were the
biggest advancers among the Tokyo Stock Exchange's 33 industry
subindexes, both notching up 5.54%.
Auto maker shares .ITEQP.T were strong, with Yamaha Motor
Co Ltd 7272.T surging 7.65%, Mazda Motor 7261.T up 7.61% and
Mitsubishi Motor 7211.T gaining 7.77%.
In the broader market, Topix .TOPX gained 2.83% to
1,574.12.
Park 24 Co Ltd 4666.T dipped 7.86% after the car park
operator reported its first deficit since listing, hugely hit by
the stay-at-home trend due to the coronavirus outbreak.

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