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The benchmark Nikkei average closed above 29,000 for the first time in 30½ years on Monday, lifted by a continued Wall Street rally on hopes for a large-scale stimulus package.

The 225-issue Nikkei average soared 609.31 points, or 2.12%, to close at 29,388.50, the highest finish since Aug. 3, 1990. On Friday, the key market gauge jumped 437.24 points.

The Topix index of all TSE first section issues finished up 33.00 points, or 1.75%, at 1,923.95, the level unseen since June 5, 1991. The index gained 25.83 points the previous trading day.

Tokyo stocks spurted right after the opening bell on broad-based buying spurred by all three major U.S. market indicators, including the Dow Jones Industrial Average, extending their rising streaks Friday.

Buying sentiment was boosted by the approval of a budget resolution by both the U.S. House and Senate that enables President Joe Biden’s $1.9 trillion coronavirus relief package to pass through Congress despite the Republicans’ opposition.

Shipping issues and other cyclicals and laggards especially attracted purchases amid growing hopes for economic recovery thanks to the proposed major stimulus package and the ongoing extremely low interest rate environment, brokers said.

“Buying was led by players with short positions,” a midsize brokerage house official said.

After the initial upsurge, however, the market became top-heavy due to stepped-up selling to lock in gains.

Kazuo Kamitani, strategist at Nomura Securities Co., pointed out that stocks have risen too fast.

“As Tokyo stocks were expected to go through a consolidation phase this week, a further market rise would make investors wary of overheating,” Kamitani said.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said that Japanese firms’ earnings reports that were to be released after the closing had little impact on trading because they had already been priced in.

On the TSE first section, gainers overwhelmed decliners 1,710 to 429, while 52 issues were unchanged. Volume inched up to 1.585 billion shares from Friday’s 1.537 billion shares.

Kobe Steel and Nippon Steel rocketed 17.47% and 10.04%, respectively, following their upward revisions to earnings estimates for the year ending in March.

Shipping firm Nippon Yusen surged 5.88% and JR East 4.85%, reflecting the popularity of cyclicals.

Technology investor SoftBank Group attracted buying ahead of its earnings release later the same day.

On the other hand, technology and entertainment giant Sony dropped 2.85% to snap a six-day rally.

Automaker Suzuki and glass manufacturer AGC succumbed to selling as well.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average leaped 620 points to end at 29,410.

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