TOKYO (Kyodo) – Tokyo stocks rose in volatile trading Tuesday as hopes for curbing in the spread of the coronavirus in the United States and Europe offset caution about the impact of a state of emergency in Japan to be declared later in the day.
The Nikkei index moved in a range of over 600 points between positive and negative territory amid concerns over a further slowdown in economic activities after Prime Minister Shinzo Abe said Monday that he would declare a state of emergency for Tokyo, Osaka and five other prefectures.
The 225-issue Nikkei Stock Average ended up 373.88 points, or 2.01 percent, from Monday at 18,950.18 after briefly recovering to the 19,000 level for the first time in a week.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 26.91 points, or 1.96 percent, higher at 1,403.21.
Gainers were led by glass and ceramics, service and rubber product issues.
In the currency market, the U.S. dollar edged down to the upper 108 yen range from the lower 109 yen in New York. At 5 p.m., the dollar fetched 108.87-88 yen compared with 109.18-28 yen in New York and 109.17-19 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $ 1.0877-0879 and 118.42-46 yen against $ 1.0789-0799 and 117.79-89 yen in New York and $ 1.0817-0818 and 118.09-13 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year government bond stood at 0.000 percent, unchanged from Monday’s close.
The Nikkei briefly rose over 550 points on hopes that measures taken in some hard-hit countries against the virus outbreak will prove effective in slowing the spread. New York Gov. Andrew Cuomo reportedly said the number of daily deaths from COVID-19, a disease caused by the new coronavirus, have been “effectively flat” in his state for the past two days.
Japan’s biggest-ever stimulus package worth 108 trillion yen ($ 989 billion) to ease the impact from the new coronavirus also helped stocks extend gains.
But once the key index topped the 19,000 level, investors were reluctant to keep chasing the upside due to the uncertain impact of the emergency declaration on the economy. There will be no citywide lockdowns.
“Concerns remain over whether the declaration can really curb the virus outbreak” without citywide lockdowns, said Kazuo Kamitani, senior associate of the investment research and investor services department at Nomura Securities Co.
Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., said, “We still expect to see high volatility in the stock market for a while.”
On the First Section, advancing issues outnumbered decliners 1,877 to 255, while 36 ended unchanged.
Technology issues were higher following gains by their U.S. peers overnight. Advantest soared 525 yen, or 12.7 percent, to 4,645 yen, Screen Holdings climbed 235 yen, or 6.1 percent, to 4,065 yen and Sumco ended up 89 yen, or 6.5 percent, at 1,460 yen.
Among issues affected by a drop in inbound tourists and stay-at-home requests, cosmetics maker Shiseido rose 178 yen, or 2.8 percent, to 6,432 yen and movie theater operator Toho gained 80 yen, or 2.5 percent, to 3,280 yen.
Trading volume on the main section rose to 1,703.51 million shares from Monday’s 1,679.62 million shares.