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CORRECTED-Nikkei jumps to 29-year high, Honda leads carmakers on upbeat earnings

Published 09-11-2020, 12:17 pm
Updated 09-11-2020, 05:12 pm
© Reuters.
JP225
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BIIB
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MS
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TOPX
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7261
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7267
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4523
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9202
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9201
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9517
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ITEQP.T
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7203
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1407
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3563
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(Corrects Topix close in fourth paragraph to 1,681.90, not 1,6781.90)

By Hideyuki Sano

TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average on Monday reached a high last seen almost three decades ago, after Joe Biden clinched the U.S. presidency, with Honda Motors 7267.T leading gains among carmakers on strong earnings figures.

Investors, who had held off purchases last week due to U.S. political uncertainty, rushed to buy as they focused on Biden's ability to expand fiscal stimulus and measures to reduce the spread of COVID-19. Nikkei .N225 rose 2.12% to 24,839.84, its highest close since November 1991, adding 8.1% in the last five sessions of gains.

The broader Topix .TOPX rose 1.41% to 1,681.90, a level last seen in late February.

Honda Motor 7267.T gained 9.4% after the carmaker posted strong quarterly earnings and raised its earnings outlook.

Motor Corp 7203.T , which announced its earnings on Friday, extended gains by 2.2%, though Mazda Motor 7261.T bucked the trend by falling 2.9% after announcing disappointing earnings results. transport equipment maker index .ITEQP.T gained 2.4%.

"Corporate earnings are recovering more than expected. It also means a lot for the Japanese market that car makers are showing a strong recovery," said Takuya Hozumi, a global investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.

"In addition, Eastern Asian shares, including Japan, were helped by the relatively contained level of coronavirus infections."

Sushiro Global 3563.T jumped 15.2% after the sushi restaurant chain operator reported a better-than-expected profit for the July-September quarter, recovering from a slump triggered by the epidemic in the preceding quarter.

Renewable energy-related firms also soared following Biden's victory. Renova 9517.T gained 6.4%, West Holdings 1407.T added 3.4% and Erex 9517.T rose 13.2%.

On the other hand, Japan Airlines 9201.T fell 11% after the company unveiled its plans to sell new shares to raise about $1.6 billion. Rival ANA 9202.T also felt the heat and dropped 1.9%.

Eisai 4523.T dived 23.6% after a panel to the U.S. health regulator voted that a potential Alzheimer's treatment from the firm and Biogen Inc BIIB.O has not been proven to slow progression of the disease. (Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

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