Nikkei Hits 30Year High after Georgia Runoffs

TOKYO, Jan 7 Reuters Japanese shares rose to multiyear highs on Thursday, powered by financials as U.S. bond yields climbed on hopes of larger debtfinanced stimulus following a Democrat sweep in two Senate runoffs in Georgia.

The Nikkei average rose 1.91 to 27,571.87 by late morning, briefly hitting its highest level since August 1990.

The broader Topix added 2.24 to 1,836.37, climbing above a peak hit late last year to reach its highest level since October 2018.

Investor appetite was not dented by the chaos in Washington D.C. after supporters of President Donald Trump stormed Capitol Hill, forcing Congress to suspend a session to certify Presidentelect Joe Bidens victory.

That seemed like the ultimate epitome of four years of Trumps presidency. But no one thinks the election results will be overthrown by this, said Takashi Hiroki, chief strategist at Monex.

Sharp rises in U.S. bond yields boosted shares of Japanese banks and insurers, big investors in U.S. debt.

Daiichi Life Holdings rose 8.5 and TD Holdings gained 8.6.

Among banks, SMFG gained 5.0, while Mizuho added 4.8 and Mitsubishi UFJ rose 3.7.

Other cyclical, value shares also gained on hopes of a stimulus package from the incoming Biden U.S. administration.

Topix Value Index gained 2.6, outperforming 2.0 rise in Topix Growth.

Steelmakers gained 5.3, with Nippon Steel rising 7.5. Ship builder Hitachi Zosen surged 13.5.

Domestic leisurerelated shares, such as railway companies , bounced back even as…

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