By Hideyuki Sano
TOKYO, Nov 10 (Reuters) - Japan's Nikkei share average rallied to a 29-year high on Tuesday as battered airlines, railway and department store operator shares jumped on news of progress in the development a COVID-19 vaccine.
Investors switched to beaten-down value shares while dumping those which benefited from the stay-at-home trend during the pandemic, such as internet service firms and game companies.
Airliner ANA Holdings 9202.T jumped 16.9%, while the country's three big railway operators — East Japan Railway 9020.T , West Japan Railway 9021.T and Central Japan Railway 9022.T — all vaulted more than 10%.
Pfizer (NYSE: PFE ) PFE.N and German partner BioNTech SE 22UAy.F said its experimental COVID-19 vaccine was more than 90% effective based on initial trial results. value .TOPXV rose 2.8% as insurers .IINSU.T and banks .IBNKS.T benefited from surge in U.S. bond yields while other "old economy" shares, such as steelmakers .Istle , gained on hopes of a broader recovery in the economy.
"Perhaps markets were preoccupied with U.S. elections a bit too much. Some investors who had increased cash holdings due to uncertainties over the U.S. elections are now coming back as they see a real chance of a recovery in corporate earnings," said Takatoshi Itoshima, strategist at Pictet Asset Management.
Internet service firms and game companies, with their valuation stretched after concentration of investors' funds, fell out of favour.
Bandai Namco Holding 7832.T dropped 5.7%, while Nintendo 7974.T lost 5%. Internet firm Z Holdings 4689.T shed 3.9% while medical service platform operator M3 2413.T , one of the market's best performers this year, dropped 3.5%.
Mothers start-up shares .MTHR , another high-flyer this year, fell 4.1%. (Editing by Uttaresh.V)
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.