Japanese investors encouraged by containment progress
Monday, 25 May 2020
The Tokyo Stock Exchange closed higher on Monday ahead of the expected lifting of the state of emergency in Tokyo and encouraging signs of a gradual recovery in activity.
The Nikkei Focus List Index rose 1.73% to 20,741.65 points, while the broader Topix Index gained 1.65% to 1,502.20 points.
Investors seemed to be relieved by the announced end of the state of emergency caused by the new coronavirus (Covid-19), which is still in force in Tokyo and its neighbouring prefectures as well as on the island of Hokkaido.
The lifting of the state of emergency was first scheduled for the end of the month. The country seems to have succeeded in containing the coronavirus, counting some thirty daily cases as opposed to nearly 700 at its peak.
On Friday, the Bank of Japan (BoJ) also announced a new loan program for businesses to help them cope with the crisis.
BoJ has taken measures to support the Japanese economy amounting to a total of ¥75,000 billion (nearly €640 billion).
The Yen was down slightly against the Dollar at 8:25 AM Belgian time, with the Dollar trading at ¥107.70 as opposed to ¥107.64 at 11:00 PM Belgian time on Friday. The Yen rose against the Euro, however, as a Euro now equals ¥117.14, compared to ¥117.34 at the end of last week.
Oil prices also rose, with a barrel of WTI crude oil up 1.20% to $33.65 (€30.89) and a barrel of Brent up 0.63% to $35.35 (€32,45).