TOKYO, Dec 1 (Reuters) - Japanese shares rose toward a 29-year high on Tuesday, tracking gains in U.S. stock futures on the back of growing optimism that major drugmakers will roll out coronavirus vaccines some time before the end of the year.
Makers of precision equipment, electronic parts, and chemicals led the advance in a sign that investors are betting on cyclical companies with close links to global demand.
Japanese stocks got off to a bright start after Moderna Inc MRNA.O said it had applied for U.S. emergency authorization for its COVID-19 vaccine. Moderna's candidate is the second vaccine likely to win U.S. approval for a potential rollout this year. addition, Japan's government has vowed to compile a stimulus package to help the economy mitigate short-term economic impacts from a recent rise in coronavirus infections. may be some slight adjustments, but Japanese stocks won't fall very far," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co.
"Approval of a vaccine is a big boost. Some traders are also focused on an increase in Japanese fiscal spending."
U.S. stock futures EScv1 rose 0.83% in early Asian trade, which also bolstered Japanese shares.
There were 170 advancers on the Nikkei index against 49 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.57 billion, compared to the average of 1.27 billion in the past 30 days.
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