TOKYO, Oct 11 (Reuters) - Japan's Nikkei share average rose
for a third straight session on Monday, extending its recovery
from a six-week low marked last week, as a sharp decline in the
yen boosted exporters while a drop in COVID-19 infections added
to economic reopening hopes.
The Nikkei closed 1.60% higher at 28,498.20, gaining
more than 1,000 points from Wednesday's six-week low, while the
broader Topix rose 1.77% to 1,996.58, marking its second
straight winning session.
New cases of coronavirus infections in Japan fell to 553 on
Sunday, the lowest in almost a year, according to public
broadcaster NHK. At the height of Japan's fifth wave in late
August, the number was close to 26,000.
"The rapid drop in coronavirus infections nationwide has
taken away one reason for investors to be cautious, and they are
buying back shares," said a market participant at a domestic
Air transport was among the best performing Topix
sectors, rising 3.59%. ANA Holdings rose 3.7% and Japan
Airlines added 3.5%.
Meanwhile, the yen slid as far as 112.75 per dollar for the
first time since December 2018. A weaker currency increases the
value of goods sold overseas when profits are repatriated.
Toyota Motor rose 3.3%, while Mitsubishi Motors
rallied 5.9% and Nissan Motor gained 5.3%. The
transport equipment sector added 3%.
Panasonic Corp advanced 6.7%, while a recovery in
Chinese tech shares helped SoftBank Group rise 4.9%.
Sony Group rose 4.4% amid a report that it might
build a new chip plant with TSMC in Japan.
Yaskawa Electric Corp slid 1.9%, despite an upward
revision to its profit outlook on Friday. The company is among
the first to report results every season, and is widely viewed
as a bellwether.
"On the surface the revision looks good, but it seems the
market was hoping for a bit higher number," said a market
participant with a separate domestic securities firm.
Business-support company Sansan surged 14.4% after
announcing a stock split along with earnings results.
(Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)