TOKYO, Oct 5 (Reuters) - Japanese shares bounced back on
Monday, led by gains in value shares including railway
companies, after doctors said U.S. President Donald Trump's
health was improving following treatment for COVID-19.
The Nikkei share average rose 1.35% to 23,340.52
points, erasing its Friday losses following news of Trump
testing positive for the coronavirus.
Doctors said the president could be sent back to the White
House as soon as Monday, although they were monitoring the
condition of his lungs after he received supplemental oxygen.
The broader Topix rose 1.86% to 1,639.21 with
value-oriented shares gaining 2.21%, outperforming
1.57% gain in growth shares.
In particular, railway companies rebounded sharply from
Friday's plunge, in part helped by hopes for increased travel
demand due to the government's campaign to encourage domestic
tourism while the coronavirus keeps many international borders
West Japan Railway, Central Japan Railway
and East Japan Railway rose 5.8%, 5.5% and 4.2%,
Insurers also did well, with Dai-ichi Life Holdings
rising 4.9% and Sompo Holdings adding 4.3%.
On the other hand, Nitori, one of the stay-at-home
winners, fell after the furniture store chain operator's
June-August earnings fell short of the market's high
"In the first half of Japanese financial year, stay-at-home
winners have performed strongly. But as we enter the new half
year, at least so far, they don't seem to have momentum, said
Fumio Matsumoto, chief strategist at Okasan Securities.
Elsewhere, Honda Motor gained 2.6% after the
carmaker announced on Friday it would end its participation as
an engine supplier in the FIA Formula One World Championship to
focus on zero-emission technology.
NEC gained 1.3%, slightly less than the overall
market, after the IT and electronics firm said it would buy
Swiss financial software company Avaloq Group AG for 2.05
billion Swiss francs ($2.2 billion).
(Reporting by Hideyuki Sano;
Editing by Vinay Dwivedi)