TOKYO, April 7 (Xinhua) -- Tokyo stocks closed higher Tuesday as improved sentiment following a drop in the number of reported deaths from the coronavirus in the U.S. and Europe was offset by a circumspect mood ahead of a state of emergency in Japan declared later in the day.
The 225-issue Nikkei Stock Average ended up 373.88 points, or 2.01 percent, from Monday to close the day at 18,950.18.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 26.91 points, or 1.96 percent, to finish at 1,403.21.
Trading got off to a bright start here, local brokers said, tracking global stocks and U.S. futures higher, following data showing that measures to curb the spread of the COVID-19 pandemic in Italy, Spain and New York were making some headway.
Views were mixed, however, regarding the Japanese government's planned record 108-trillion-yen (989-billion-U.S. dollar) stimulus package, the equivalent of 20 percent of Japan's economic output, compiled to help cushion the economic blow from the impact of the coronavirus on businesses and households, analysts said.
Despite the hefty package, they voiced caution saying the market would remain volatile for the time being.
"The proposed large stimulus package is a very positive step. But markets have already begun to price in the passage of a 60-trillion-yen stimulus, including a fiscal outlay of 20 trillion yen," Naoya Oshikubo, senior economist at SuMi TRUST, said.
"So unless the measures announced are even larger than forecast, market sentiment will not improve in the short-term, the yen will not weaken and the stock market will not rally," Oshikubo said.
In addition, uncertainty over the efficacy of Prime Minister Shinzo Abe's declaration of a state of emergency issued Tuesday to combat the effects of the coronavirus pandemic in Japan, capped gains, with analysts speculating whether the measures would be enough to curb the spread of the virus.
"Concerns remain over whether the declaration can really curb the virus outbreak, without citywide lockdowns," Kazuo Kamitani, senior associate of the investment research and investor services department at Nomura Securities, was quoted as saying.
In terms of the market outlook as regards the government's prospective latest efforts to deal with the spread of the virus, Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities, maintained, "We still expect to see high volatility in the stock market for a while."
Technology shares found favor, however, tracking U.S. shares higher, helped by the U.S. Philadelphia semiconductor index climbing overnight.
Tokyo Electron Ltd. added 5.7 percent, Advantest Corp. jumped 12.7 percent, while Screen Holdings and Sumco Corp. closed the day 6.1 percent and 6.5 percent higher, respectively.
Issues that had outperformed recently were ripe for profit-taking, traders here said, with Fujifilm Holdings Corp., producer of the Avigan anti-flu drug seen as a potential treatment for symptoms of COVID-19, retreated 5.5 percent, despite reports Japan plans to provide the drug for free to 20 countries.
Web/TV conferencing services provider V-cube Inc. ended the day 5.2 percent lower, as investors opted for profits, after the firm's stock found traction amid students and those working from home looking to online solutions amid stay at home requests.
By the close of play, glass and ceramics product, service and rubber product-linked issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,877 to 255 on the First Section, while 36 ended the day unchanged.
On the main section on Tuesday, 1.703 billion shares changed hands, rising from Monday's volume of 1.679 billion shares.
The turnover on the second trading day of the week came to 2,823.1 billion yen (25.87 billion U.S. dollars).
