Nikkei marks 1-month closing high on virus drug hopes, autos gain

TOKYO, July 13 (Reuters) - Japan's Nikkei share average rose
to a one-month closing high on Monday, tracking a rally on Wall
Street as a positive analysis on a potential COVID-19 drug
offset investor fears over surging virus cases.
The benchmark Nikkei share average .N225 settled 2.22%
higher at 22,784.74, its highest close since June 10, also
helped by gains in auto stocks on upbeat industry data from
China. On the index, there were 219 advancers against six
decliners.
The broader Topix .TOPX rose 2.46% to 1,573.02, with all
33 sector sub-indexes on the Tokyo exchange closing higher.
U.S. stocks gained on Friday as Gilead Sciences Inc 's
GILD.O antiviral remdesivir showed reduced risk of death in
severely ill COVID-19 patients, but the company cautioned
rigorous clinical trials were needed to confirm the benefit.
The Nasdaq posted its sixth record closing high in seven
days, up 0.66%, while the Dow and the S&P 500 added 1.44% and
1.05%, respectively. .N
Another tailwind for the Tokyo stock market was a rise in
Shanghai stocks, with the tech-heavy start-up index hitting its
highest in more than 4-1/2 years on hopes of earnings
improvement. .SS
However, investor optimism was somewhat tempered ahead of an
announcement on fresh coronavirus cases in Tokyo later in the
day.
Highly cyclical mining .IMING.T , iron and steel
.ISTEL.T , and airlines .IAIRL.T were the three top
performers on the main bourse.
Auto stocks shined after data from the China Association of
Automobile Manufacturers showed the world's biggest vehicle
market expanded by 11.6% in June from a year earlier and
registered strong growth for a third consecutive month.
Mazda Motor Corp 7261.T spiked 8.76%, while Mitsubishi
Motors Corp 7211.T and Honda Motor Co Ltd 7267.T gained 6.2%
and 5.94%, respectively.
Among losers, Yaskawa Electric Corp 6506.T edged down
0.36%, despite posting a smaller-than-expected drop in March-May
group operating profit.