(RTTNews) – The Japanese stock market is rising on Thursday despite the mixed lead overnight from Wall Street and expectations for a formal declaration by the Japanese government of a coronavirus state of emergency in Tokyo and neighboring prefectures later today.

Investor sentiment was boosted by news that Democrats have won two key Senate runoffs in Georgia and taken control of the Senate. The victories will enable U.S. President-elect Joe Biden to implement Democrats’ agenda, including rewriting the tax code as well as boosting stimulus and infrastructure spending.

The benchmark Nikkei 225 Index is gaining 429.33 points or 1.59 percent to 27,485.27, after touching a high of 27,508.71. Japanese stocks closed lower for a third straight session on Wednesday.

Market heavyweight SoftBank Group is losing more than 2 percent, while Fast Retailing is rising almost 1 percent. In the tech space, Tokyo Electron is advancing more than 1 percent Advantest is adding 0.6 percent.

The major exporters are higher on a weaker yen. Mitsubishi Electric is gaining more than 4 percent, Panasonic is rising almost 4 percent, Sony is higher by more than 1 percent and Canon is adding 0.3 percent.

Among automakers, Honda is advancing more than 1 percent and Toyota is up 0.6 percent. In the banking sector, Sumitomo Mitsui Financial is higher by more almost 5 percent and Mitsubishi UFJ Financial is rising more than 3 percent.

Among the other major gainers, Hitachi Zosen is climbing more than 12 percent, Dai-ichi Life Holdings is gaining more than 9 percent, T&D Holdings is rising more than 8 percent and Hino Motors is higher by almost 7 percent.

In the currency market, the U.S. dollar is trading in the lower 103 yen-range on Thursday.

On Wall Street, stocks closed mixed on Wednesday as traders reacted to the results of the highly anticipated Georgia runoff elections. The jump by the Dow came as Democratic control of the House, Senate and White House is seen as a positive for cyclical stocks due to the likelihood of additional fiscal stimulus. Stocks moved to the downside going into the close of trading as supporters of President Donald Trump stormed the U.S. capitol building as lawmakers began the process of certifying President-elect Joe Biden’s victory.

While the Nasdaq slid 78.17 points or 0.6 percent to 12,740.79, the Dow jumped 437.80 points or 1.4 percent to 30,829.40 and the S&P 500 climbed 21.28 points or 0.6 percent to 3,748.14.

Meanwhile, the major European markets all showed strong moves to the upside on Wednesday. While the U.K.’s FTSE 100 Index spiked by 3.5 percent, the German DAX Index surged up by 1.8 percent and the French CAC 40 Index jumped by 1.2 percent.

Crude oil futures settled at a more than ten-month high on Wednesday after data showed a drop in U.S. crude inventories last week, and Saudi Arabia said it would significantly reduce its production in the next two months. WTI crude for February advanced $0.70 or about 1.4 percent to $50.63 a barrel.

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