Tokyo shares gain on reopening hopes; air, land transport companies shine

  • Reuters
  • Stock Market News
Tokyo shares gain on reopening hopes; air, land transport companies shine
Credit: © Reuters.

SYDNEY, May 25 (Reuters) - Japanese stocks advanced on Monday as the government looked set to end the state of emergency in Tokyo and surrounding areas, raising hopes that the world's third-largest economy may soon start recovering from recession.

The benchmark Nikkei average .N225 rose 1.7% to 20,741.65, its best finish since March 6, with air and land transport shares leading the rally.

Japan plans to hold a government task force meeting later in the day to decide whether to lift state of emergency measures in Tokyo and four other prefectures, including the northern island of Hokkaido, which are still under restrictions. greater Tokyo, which accounts for about one-third of Japan's gross domestic product, back on its feet is vital to the country's overall economic recovery.

"The greater Tokyo area has 30% of Japan's population and likely accounts for about half of its personal consumption, so opening it up will clearly help the economy," said John Vail, chief global strategist at Nikko Asset Management. "It is a bit earlier than expected and the opening is quite broad."

The broader Topix .TOPX gained 1.7% to 1,502.20, also its highest close in 2-1/2 months, with all but one of 33 sector sub-indexes on the Tokyo exchange finishing higher.

Air transport .IAIRL.T was the best performing sector on the main bourse, with Japan Airlines 9201.T and ANA Holdings 9202.T soaring 9.4% and 7.6%, respectively.

East Japan Railway 9020.T climbed 5% and West Japan Railway 9021.T jumped 5.6%, also supported by economic reopening hopes.

Elsewhere, the index of Mothers startup market .MTHR climbed 3.5% to a level unseen since April 2019.

Bucking the overall trend, Fujifilm Holdings 4901.T shed 2.8% as the company did not provide profit projections for the current business year through March 2021, citing coronavirus uncertainties. the U.S. and UK markets closed for public holidays, the value of shares traded on the main board was at a six-week low of 1.74 trillion yen ($16 billion). ($1 = 107.70 yen)

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