Japan shares gain as cenbank governor eases concerns over yields

  • Reuters
  • Stock Market News
Japan shares gain as cenbank governor eases concerns over yields
Credit: © Reuters.

TOKYO, March 8 (Reuters) - Japanese shares rose on Monday as the central bank governor's remarks eased speculation that yields on government bonds would be allowed to rise, while optimism over a $1.9 trillion U.S. pandemic relief plan also underpinned sentiment.

The Nikkei share average .N225 rose 0.66% to 29,050.17 by 0218 GMT, while the broader Topix .TOPX rose 0.82% to 1,911.68.

Bank of Japan Governor Haruhiko Kuroda said on Friday he saw no need to widen an implicit band set for its long-term interest rate target at a policy review this month, stressing the need to keep borrowing costs low to support a pandemic-ravaged economy. remarks are having a strong impact on the stock market, said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.

"Investors were prepared to sell bonds at a loss and compensate that loss with a gain from selling stocks. But Kuroda's view has completely changed that direction," Fujito said.

The rise in Japanese shares also followed the passing of the COVID-19 stimulus bill by the U.S. Senate and a surprisingly strong U.S. payrolls report that augured well for a global economic rebound. MKTS/GLOB

Takeda Pharmaceutical 4502.T jumped 4.18% after the drugmaker said it had sought approval for the use of Moderna 's MRNA.O COVID-19 vaccine. biggest steelmaker, Nippon Steel Corp 5401.T , advanced 4.08% after the company said it would further reduce capacity due to falling domestic demand and intensifying competition from China. biggest oil and gas explorer, Inpex 1605.T , gained 2.5% as oil prices rose to their highest levels in more than a year. stocks that gained the most among the top 30 core Topix names were Takeda, followed by Mitsubishi UFJ Financial Group 8306.T , which rose 3.31%.

The underperformers among the Topix 30 were Nidec Corp 6594.T , which fell 3.91%, followed by Nintendo 7974.T , losing 2.74%.

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