Tokyo stocks’ upsurge continued for the seventh consecutive session Wednesday, enabling the benchmark Nikkei average to end above 25,000 for the first time in 29 years.
The 225-issue Nikkei average of the Tokyo Stock Exchange surged 444.01 points, or 1.78%, to close at 25,349.60, the first closing above the psychologically significant threshold since Nov. 1, 1991 and the best finish since June 4 the same year. On Tuesday, the key index rose 65.75 points.
The Topix index of all TSE first section issues went up 28.27 points, or 1.66%, to end at 1,729.07, after climbing 18.90 points the previous day.
Taking heart from the U.S. Dow Jones Industrial Average’s further advance Tuesday, investors hunted a wide range of stocks, especially cyclicals, from the outset.
Unabated expectations for the development of an effective coronavirus vaccine at an early date kept buying sentiment strong, brokers said.
Stocks extended their gains in the afternoon, with the Nikkei jumping nearly 500 points at one point, thanks to a rise in Dow futures in off-hours trading.
Optimism over a breakthrough in the fight against the novel coronavirus heightened after major U.S. drugmaker Pfizer reported an over 90% efficacy rate for a vaccine it is developing with German partner BioNTech in the phase 3 clinical trial.
Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, noted that hopes for the Pfizer-BioNTech vaccine were swelled further by a comment made to CNN on Tuesday by Anthony Fauci, head of the U.S. National Institute of Allergy and Infectious Diseases, that the vaccine can be administered to people “by the end of November, the beginning of December.”
“The market was also supported by the yen’s continued slide against the dollar,” she added.
On the TSE first section, gainers overwhelmed decliners 1,614 to 493 with 69 issues unchanged. Volume decreased to 1.683 billion shares from Tuesday’s 2.065 billion shares.
Inpex and other oil stocks got a boost from higher crude oil prices.
Electronic device producer Casio surged 10.81% after posting better-than-expected operating profit for July-September.
Fujifilm Holdings was buoyed 4.41% by the technology firm’s upward revisions to its operating profit and net profit forecasts for the year ending next March.
Among other major winners were air conditioner-maker Daikin and clothing store chain Fast Retailing.
On the other hand, game-maker Nexon and Dai Nippon Printing succumbed to strong selling pressure.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average leaped 470 points to end at 25,420.
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