Nikkei ends at fresh 29-year peak as vaccine hopes continue to rise

  • Reuters
  • Stock Market News
Nikkei ends at fresh 29-year peak as vaccine hopes continue to rise

TOKYO, Nov 11 (Reuters) - Japan's Nikkei surged to close at a fresh 29-year high on Wednesday, as investors remained hopeful of a swift global economic recovery from the COVID-19 pandemic on vaccine-related developments.

The benchmark Nikkei share average .N225 closed 1.78% higher at 25,349.60, marking its highest closing level since June 1991.

The index also extended gains to a seventh consecutive session, its longest rally since October 2019.

The broader Topix .TOPX gained 1.66% to 1,723.65, its highest level since Feb. 7. All but three of the 33 sector sub-indexes on the Tokyo exchange traded higher.

Along with optimism after U.S. drugmaker Pfizer (NYSE: PFE ) PFE.N said on Monday that its initial trial results showed that the experimental COVID-19 vaccine is more than 90% effective, Japanese shares were supported by upbeat company earnings reports and receding U.S. political uncertainty, analysts said. stock futures edged higher in Asian trade, while upbeat company earnings also provided a tailwind to the market.

Cyclical financials sectors outperformed as they benefited from an overnight jump in U.S. Treasury yields, with insurers .IINSU.T and banks .IBNKS.T up 3.06% and 2.72%, respectively.

Meanwhile, airlines ANA Holdings 9202.T and Japan Airlines 9201.T , which had soared around 17% each on Tuesday on the vaccine rally, lost steam and were last down 1.13% and 2.11%, respectively.

Internet service provider DeNA 2432.T was among the largest percentage gainers in the index, soaring more than 12% after it posted upbeat half-year earnings. banks gained after the Bank of Japan unveiled on Tuesday a scheme aimed at incentivising regional lenders to consolidate and help revitalise regional economies. Financial Group 7186.T jumped more than 4.7%, followed by Shimane Bank 7150.T and Chiba Bank 8331.T rising 5.61% and 3.57%, respectively.

Kansai Mirai Financial Group 7321.T jumped 13.4% after Resona Holdings 8308.T said it would pay up to 66.15 billion yen ($628.38 million) to take full control of the company. Resona Holdings climbed nearly 4.47%. ($1 = 105.2700 yen)

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