• JIJI

  • SHARE

The benchmark Nikkei stock average rebounded sharply on the Tokyo Stock Exchange on Monday to finish at the highest level since the collapse of the nation’s bubble economy in the early 1990s.

The 225-issue Nikkei average of the Tokyo Stock Exchange rose 521.06 points, or 2.05%, to end at 25,906.93, the highest close since June 3, 1991. On Friday, the key index dipped 135.01 points.

The Topix index of all TSE first section issues climbed 28.59 points, or 1.68%, to finish at 1,731.81, after shedding 23.01 points the previous trading day.

The Tokyo market was bullish from the outset, buoyed by gains on all three key U.S. stock market yardsticks, including the Dow Jones Industrial Average, on Friday.

Tokyo stocks rose further in the afternoon, supported by positive Chinese economic statistics and rises of other Asian equities that came after 15 Asia-Pacific nations signed the Regional Comprehensive Economic Partnership agreement for free trade Sunday.

Brokers said that the strong market confidence was fueled by expectations for the development of an effective novel coronavirus vaccine, while noting that such hopes were carried over from last week and were not based on fresh news.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said that the Tokyo market was “overspeeding,” referring to its rapid rise from early this month. He also said the bull run raised the risks of “stocks plummeting if the coronavirus vaccine development stumbles.”

Ota said that a majority of earnings reports released by Japanese companies after Friday’s market close were received favorably by investors, adding to the market enthusiasm.

Japan’s gross domestic product data for July-September, announced before the opening bell, had little impact on market sentiment despite exceeding investor expectations, brokers said.

On the TSE first section, rising shares outnumbered falling ones 1,703 to 425 with 48 issues unchanged. Volume rose to 1.407 billion shares from Friday’s 1.333 billion shares.

Cyclicals such as real estate and shipping names jumped on coronavirus vaccine hopes, including Mitsui Fudosan, up 6.58%, and Kawasaki Kisen, up 6.98%.

Tire maker Yokohama Rubber and insurer T&D scaled 7.01% and 7.44%, respectively, after reporting strong earnings Friday.

Semiconductor names Tokyo Electron and Advantest also attracted buying.

On the other hand, companies which were seen as high performers even amid the coronavirus crisis, such as Z Holdings, parent of internet service provider Yahoo Japan, and online fashion retailer Zozo, succumbed to selling.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 650 points to end at 25,990.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW