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The benchmark Nikkei average rebounded to close at the highest level since mid-February on the Tokyo Stock Exchange on Monday on the back of the Dow Jones Industrial Average’s rally late last week.

The 225-issue Nikkei average of the TSE gained 260.50 points, or 1.11%, to end at 23,671.13, the highest finish since Feb. 14, after two straight sessions of decline. The index shed 96.60 points Friday.

The Topix index of all TSE first section issues finished up 20.29 points, or 1.25%, at 1,637.98, following a 14.10-point fall the previous trading day.

Tokyo stocks jumped from the outset of Monday’s trading after the Dow rebounded Friday on better-than-expected U.S. retail statistics and positive news regarding coronavirus vaccine development.

But the Nikkei became top-heavy when it came around the 23,700 line and went sideways just below the level for the rest of the day, as many investors sat on the fence amid a dearth of fresh domestic incentives for trading, brokers said.

China released its gross domestic product data for July-September during morning trading hours in Tokyo. The outcome fell short of market expectations, but it did not have a significant impact on the Tokyo market.

According to Hirohumi Yamamoto, strategist at Toyo Securities Co., investor sentiment was not dampened by the Chinese GDP report as the country’s upbeat retail and industrial production statistics, released the same day, showed that the world’s second-biggest economy was steadily rebounding from the economic downturn triggered by the coronavirus epidemic.

Kazuo Kamitani, Nomura Securities Co.’s senior associate at the Investment Research & Investor Services Department, said that worries over the resurgence of the novel coronavirus in Europe and the United States capped the Tokyo market’s rise.

Rising issues outnumbered falling ones 1,811 to 314 in the TSE’s first section, with 55 issues unchanged. Volume decreased to 862 million shares from Friday’s 917 million shares.

Toray Industries Inc. and Kawasaki Heavy Industries, both parts suppliers for Boeing, jumped after the European regulator reportedly signaled that the aircraft-maker’s 737 Max, which has been grounded for safety reasons, may be given the go-ahead to resume flying in Europe by the end of the year.

Movie distributor Toho Co. rose 4.47%, riding on the wave of the massive popularity of the film version of the “Demon Slayer: Kimetsu no Yaiba” manga series that premiered Friday and is distributed by the company.

Other winners include SoftBank Group Corp., up 3.15%, and J. Front Retailing Co., up 6.36%.

Meanwhile, some names which had been popular in the past week met with selling as investors moved to lock in gains, including cloud service provider Cyberlinks Co., down 12.75%.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 250 points to end at 23,660.

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