Nikkei hits 29-year high as vaccine optimism boosts risk appetite

  • Reuters
  • Stock Market News
Nikkei hits 29-year high as vaccine optimism boosts risk appetite

TOKYO, Nov 17 (Reuters) - Japan's Nikkei share average closed at a 29-year high on Tuesday as investors cheered news of another potential coronavirus vaccine that re-ignited hopes of a swift global recovery.

The Nikkei share average .N225 rose 0.42% to 26,014.62, its highest close since May 1991. The broader Topix .TOPX added 0.15% to 1,734.39, after having slipped into negative territory in morning trade.

Investor sentiment was given a boost when Moderna Inc MRNA.O said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data. downturn risks remain as investors turned cautious after the index rallied sharply by more than 13% this month, and as new coronavirus cases have been surging both at home and abroad, analysts said.

The benchmark index had closed at a 29-year high on Monday as well after the economy posted its first expansion in four quarters. market has been overheated by a high-paced rise, and it would be no wonder if stocks go into correction at any time in the short term," said Maki Sawada, equity market strategist at Nomura Securities.

The S&P 500 and Dow Jones industrial average notched record closing highs on Monday after Moderna Inc MRNA.O became the second U.S. drugmaker to report trial results that far exceed expectations.

Around two-thirds of the 33 sector sub-indexes on the Tokyo exchange traded higher.

The airline sector led gains, climbing 3.96%, with ANA Holdings 9202.T and Japan Airlines 9201.T adding 4.16% and 3.72%, respectively.

Other cyclical sectors followed, with miners .IMING.T , insurers .IINSU.T and iron and steel .ISTEL.T rising between 2.1% and 3.4%.

Semiconductor Tokyo Electron 8035.T rose 1.32% to a record high, taking positive cues from its U.S. peers.

Nikkei's heavyweight Fanuc Corp 6954.T rose nearly 1.5%, helped by upbeat industrial output data from China and the formation of a regional trade bloc comprising 15 Asia-Pacific economies. Mothers Index .MTHR of start-up firm shares bucked the overall firmness and dropped 3.63%.

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