By Stanley White
TOKYO, Jan 8 (Reuters) - Japanese stocks surged on Friday to close at a 30-year high as expectations of more U.S. fiscal stimulus and rising bond yields set off a cascade of bets that global inflation will accelerate.
The Nikkei 225 Index .N225 ended 2.36% firmer at 28,139.03, closing at the highest since August 1990, with raw materials and technology shares leading the gains.
The broader Topix .TOPX rose 1.57% to 1,854.94 to close at its highest since February 2018.
Global equities got a major boost after incoming U.S. President Joe Biden's Democrats won control of the Senate that clears the path for his government to use big fiscal spending to stimulate the pandemic-ravaged economy. tech sector outlook has brightened after semiconductor makers Samsung Electronics Co Ltd 005930.KS and Micron Technology Inc MU.O forecast robust profit and revenue. should expect more fiscal spending and more deficits under Biden," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co.
"We have a reflationary trade, because we have a weak dollar, stronger equities, higher long-term yields, and higher commodity prices."
The Topix index for electric machinery makers .IELEC.T , which includes many semiconductor-related shares, rose 2.71% to the highest since March 2000.
The Nikkei average in dollar-denominated terms smashed through its peak during the 1989 bubble economy to rise to a record. were 193 advancers in the Nikkei index against 29 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 1.15 billion, compared with the average of 1.19 billion in the past 30 days.
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