Tokyo shares rise to near 3-month high as Japan reopens economy

  • Reuters
  • Stock Market News
Tokyo shares rise to near 3-month high as Japan reopens economy
Credit: © Reuters.

SYDNEY, May 26 (Reuters) - Japanese stocks climbed on Tuesday to their highest in nearly three months as investors cheered Prime Minister Shinzo Abe's decision to lift the state of emergency and end coronavirus-induced restrictions nationwide.

The benchmark Nikkei average .N225 advanced 2.6% to 21,271.17, its highest close since March 5, with air and land transport companies leading the rally.

Abe said late Monday that the state of emergency would be lifted for all of Japan, including Tokyo and its surrounding areas, and that the country managed to get the outbreak under control in under two months. 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.

Analysts suspect some foreign investors bought back stock futures for loss-cutting as the Nikkei rose above 21,000, their estimated cost of selling.

The broader Topix .TOPX gained 2.2% to 1,534.73, its highest close since Feb. 28, with all 33 sector sub-indexes on the Tokyo exchange finishing higher.

Air transport .IAIRL.T was the best performing sector on the main bourse for the second day in a row, with Japan Airlines Co Ltd 9201.T and ANA Holdings Inc 9202.T soaring 8.2% and 5.7%, respectively.

West Japan Railway Co 9021.T jumped 8.3% and Central Japan Railway Co 9022.T advanced 5.2%, also supported by hopes of demand rebound following the reopening.

Isetan Mitsukoshi Holdings Ltd 3099.T climbed 5.1% after the department store operator said it would reopen its main stores in the Tokyo area, including its Isetan flagship in Shinjuku. Inc 4563.T surged 10.5% after the Nikkei business daily reported the bio-pharma venture was set to begin a clinical trial of a COVID-19 vaccine in July, raising hopes that the medication could secure government approval by the end of this year.

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