Tokyo stocks are likely to climb in 2021 with progress in global COVID-19 vaccinations helping to improve the business climate and Japan's accommodative monetary policies remaining in place.

Analysts forecast the benchmark 225-issue Nikkei stock average of the Tokyo Stock Exchange, which finished 2020 trading Wednesday at 27,444.17 — the highest year-end close since 1989 — will move between 21,000 and 30,500 in 2021.

"In the first half of 2021, the stock market will still be weighed down by the continuing pandemic. But as more people get vaccinated, there will be a bigger pickup in the second half," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.