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