Japan Shares Extend Rally, End at 2912Year High

TOKYO, Dec 2 Reuters Japans Nikkei share average closed at a 2912year high on Wednesday, buoyed by hopes of a U.S. stimulus package and progress in a COVID19 vaccine, but gains were capped by some profittaking after a strong November rally.

Nikkei ended up 0.05 at 26,800.98, its highest closing since April 1991, extending its bull run after U.S. elections. The broader Topix rose 0.32 to 1,773.97, edging near a twoyear peak touched last Friday.

With the Nikkei so close to 27,000, investors are getting a bit cautious. Weve priced in a lot of good news. But I dont think the market will fall that much either, said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Sentiment was also fuelled as U.S. politicians put forth a flurry of proposals on coronavirus relief packages after a monthlong partisan standoff.

Hopes that vaccines can reduce the need for strict social restrictions next year also underpinned the market, especially value shares.

Honda Motor rose 5.1 while retailer Seveni Holdings climbed 3.3 and Takeda Pharmaceutical added 2.9.

Topix value rose 1.01, outperforming 0.32 gains in growth shares.

The Nikkeis gains were checked by a 4.8 drop in Recruit Holdings, after the recruitment advertiser said its shareholders would sell 416.8 billion yen 4 billion worth of shares in the company to overseas investors.

Some other largecap growth shares were bruised by profittaking, with both Sony and Hoya losing 2.0 each.

Ito en lost 3.8 after…

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News