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Tokyo stocks soared Tuesday in the wake of overnight gains on Wall Street, pushing up the benchmark Nikkei average to the highest closing level in over three decades.

The 225-issue Nikkei average of the Tokyo Stock Exchange jumped 714.12 points, or 2.66%, to close at 27,568.15, the highest closing level since Aug. 15, 1990. On Monday, the benchmark index climbed 197.42 points.

The Topix index of all first-section issues gained 31.14 points, or 1.74%, to finish at 1,819.18, extending its winning streak to a fifth day. The index rose 9.63 points the previous day.

The market jumped in the morning after all three major U.S. stock indexes, including the Dow Jones Industrial Average, rewrote their record closing highs the day before, following U.S. President Donald Trump’s signing of a coronavirus relief package.

Market sentiment was also buoyed by the U.S. House passage of a bill for larger stimulus checks than were included in the package, in line with Trump’s call.

Additionally, a rise of Dow futures in off-hours trading helped boost Tokyo stocks.

The market continued to advance throughout the day as investors took heart after the Nikkei surpassed the psychological threshold of 27,000, which the key market gauge had been unable to reach due to profit-taking.

Brokers said that the swift rise of Tokyo stocks is unlikely to be followed by a correction, as concerns over market overheating has dissipated and coronavirus fears have been allayed by the start of vaccinations.

“While news of Trump signing the stimulus package was already reflected in the previous day’s trading, media reports regarding increased stimulus checks especially brightened today’s market mood” as such checks will hopefully stimulate U.S. consumer spending, Masayuki Otani, chief market analyst at Securities Japan Inc., said.

Meanwhile, an official at an asset management company said that the Nikkei average was rising in an unbalanced way, with major components accounting for much of its gain, predicting that the ascent will not last long.

Rising issues far outnumbered falling ones 1,814 to 316 in the TSE first section, while 46 issues were unchanged. Volume increased slightly to 1.020 billion shares from Monday’s 1.009 billion shares.

Sumitomo Dainippon Pharma advanced 16.47% on news that a subsidiary has agreed to jointly develop and sell cancer medication with U.S. drug giant Pfizer Inc.

Mitsubishi Heavy jumped after a media report that it will cooperate with a U.S. energy company in research on hydrogen power.

Heavyweight Nikkei components Fast Retailing and SoftBank Group rose 4.50% and 4.53%, respectively.

On the other hand, tobacco-maker JT plunged 4.39% as it went ex-dividend Tuesday.

Other major losers included Hino Motors and Yokohama Rubber.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average surged 790 points to 27,570.

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