By Stanley White
TOKYO, Feb 16 (Reuters) - Japanese stocks, which hit a 30-year high in the previous session, extended their rally on Tuesday as progress in the distribution of coronavirus vaccines boosted expectations that the global economy is poised for a strong recovery.
The Nikkei 225 Index .N225 rose 1.18% to 30,439.54 by 01:44 GMT as financials and real estate shares surged. At one point the Nikkei rose to 30,487.65, the highest since August 1990.
The broader Topix .TOPX rose 0.64% to 1,966,45 and at one point hit its highest since June 1991.
Japanese stocks have followed global equity markets higher in a dizzying bull run as money flows to riskier assets in anticipation of a rapid improvement in economic growth and corporate profits, but some analysts worry that recent gains are unsustainable.
"There are fundamental reasons supporting stocks, but people have been worried about the speed of the rally since the Nikkei reached 29,000," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management.
"However, it just does not seem to show signs of stopping."
Recent corporate earnings have been favourable, and Japan is expected to start coronavirus vaccinations this week.
In addition, Bank of Japan Governor Haruhiko Kuroda said on Tuesday the recent stock rally reflected the global outlook, brushing aside views its monetary policy was fuelling a bubble. stocks that gained the most among the top 30 core Topix names were Sumitomo Mitsui Financial Group Inc 8316.T up 4.04%, followed by Mitsubishi UFJ Financial Group Inc 8306.T , which gained 4.64%.
There were 137 advancers on the Nikkei index against 87 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.53 billion, compared to the average of 1.27 billion in the past 30 days.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.