By Stanley White
TOKYO, Aug 11 – Japanese shares on Tuesday gained the most in a week on hopes of additional U.S. fiscal stimulus to bolster the world’s largest economy, as major countries struggle to break free from the impact of the coronavirus crisis.
The Nikkei 225 Index ended up 1.88% at 22,750.24, the biggest daily gain since Aug. 3. Industrial and consumer discretionary shares lead the gains. The broader Topix index rose 2.54%.
U.S. congressional leaders and officials in President Donald Trump’s administration said on Monday that they were ready to resume negotiations on a coronavirus aid deal.
Trump signed executive orders restoring some unemployment payments and suspending payroll taxes on Saturday after talks stalled, highlighting the struggle to reach consensus.
Some investors are betting that U.S. Republicans and Democrats will eventually agree a comprehensive stimulus package, which supported Japanese stocks.
“The clock is ticking for a U.S. stimulus deal, but investors remain optimistic about developments in the United States,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co.
The stocks that gained the most among the top 30 core Topix names were property developer Mitsubishi Estate Co Ltd, up 7.2%, followed by Honda Motor Co Ltd gaining 6.38%.
The underperformers among the Topix 30 were mobile operator and venture capitalist SoftBank Group Corp down 2.45%, followed by games maker Nintendo Co Ltd losing 0.83%.
After the closing bell, Softbank reported a 12% rise in net income in the first quarter but did not report operating profit, saying it was “not useful” as a measure of its investment performance.
There were 204 advancers in the Nikkei index against 19 decliners.
The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.38 billion, compared with the average of 1.2 billion in the past 30 days. (Editing by Sherry Jacob-Phillips and Rashmi Aich)