Japan's Nikkei closes above 30,000 on earnings rebound, economy growth hopes

  • Reuters
  • Stock Market News
Japan's Nikkei closes above 30,000 on earnings rebound, economy growth hopes
Credit: © Reuters.

By Stanley White

TOKYO, Feb 15 (Reuters) - Japanese shares surged on Monday to close at over 30-year high on rising expectations for a rebound in corporate earnings and economic growth.

The Nikkei index .N225 ended up 1.91% at 30,084.15, reclaiming the psychologically important 30,000 level for the first time since August 1990. Energy, healthcare, and industrial shares led the gains. broader Topix .TOPX rose 1.04% to 1,953.94 to close at its highest since June 1991.

Shares of companies that have reported positive earnings rose, as investors continued to bet on sectors expected to perform well as the global economy recovers from the coronavirus pandemic.

Japan is expected to start coronavirus vaccinations this week, which is also supporting stock prices. However, Japanese stocks have rallied 8% so far this month, and some analysts warn that the market may be overheating.

"Stocks have risen so fast you could say they've broken the speed limit," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.

"Earnings growth has already been priced in for at least a year from now. There is reluctance to chase the upside from here, but stocks won't fall too much."

Equities also got a boost after data showed Japan's gross domestic product grew faster than expected in the fourth quarter. stocks that gained the most among the top 30 core Topix names were Daiichi Sankyo Co Ltd 4568.T up 3.6%, followed by Fanuc Corp 6954.T , up 3.39%.

The underperformers among the Topix 30 were Hitachi Ltd 6501.T down 0.94%, followed by Kao Corp 4452.T that lost 0.48%.

There were 163 advancers on the Nikkei index against 59 decliners.

The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 1.15 billion, compared to the average of 1.26 billion in the past 30 days.

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