Nikkei closes at 30-year high on hopes for upbeat corporate earnings
Source: Xinhua | 2021-01-26
Tokyo stocks closed higher Monday, with the benchmark Nikkei stock index hitting a 30-year closing high as sentiment remained upbeat for domestic firms' solid earnings for the October-December period.
The 225-issue Nikkei Stock Average added 190.84 points, or 0.67 percent, from Friday to close the day at 28,822.29, marking its its highest closing level since Aug. 3, 1990.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 5.36 points, or 0.29 percent, to finish at 1,862.00.
Tokyo stocks advanced after a circumspect start, as investors' risk appetite grew on expectations for robust earnings from major Japanese firms beginning this week, underpinned by improving export figures recently, brokers here said.
They added that sentiment was also bolstered by hopes that U.S. lawmakers would soon pass a hefty economic stimulus package to help kickstart the pandemic-hit economy.
Gains were capped however amid continued concerns the market may be overheating after a string of 30-year closing highs and growing fears as to whether the Tokyo Olympics will be held as planned, local market strategists said.
"The topside would be capped by caution about an overheated market and concerns whether the Tokyo Olympics will be held as planned this summer due to the resurgent coronavirus pandemic," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
By the close of play, pharmaceutical, textile and apparel, and services sector-oriented issues comprised those that advanced the most.
Pharmaceutical issues gained traction owing to the planned rollout in late February of COVID-19 vaccinations here, with Eisai climbing 2.8 percent, while Astellas Pharma added 2.1 percent.
Takeda Pharmaceutical jumped 3.5 percent, after Japan's biggest drugmaker announced the start of a clinical study of Moderna Inc's coronavirus vaccine in the country.
The pharmaceutical firm said last week that it has begun clinical trials here of U.S. biotech Moderna Inc.'s coronavirus vaccine candidate. The Moderna vaccine is aimed to be rolled out in the first half of this year.
Pharmaceutical issues' recent rally has also been supported by the government announcing it had secured an additional supply of Pfizer Inc.'s coronavirus vaccine, saying it will be made available for for 12 million people.
The government said Pfizer's vaccine is likely to gain approval from the health ministry for inoculation on Feb. 15.
Japan has already secured enough doses to vaccinate 72 million people, more than half of its population within this year. It agreed last year to buy 120 million doses for 60 million people from the U.S. pharmaceutical giant.
The government here has also made agreements with British-Swedish firm AstraZeneca plc. for doses to cover 60 million people, as well as inking a contract with Moderna Inc. for enough doses to inoculate 25 million people.
Technology shares also advanced, following their U.S. peers' rise late last week, with Alps Alpine leaping 6.1 percent, Nikon jumping 5.2 percent and Yaskawa Electric adding 1.9 percent.
Tokyo Electron rose 1.1 percent and Toshiba surged 16.8 percent, after announcing Friday it would be allowed to be relisted on the First Section this week.
On the main section on Monday, 1,016.45 million shares changed hands, dropping from Friday's volume of 1,217.52 million shares.
Issue that rose outpaced those that fell by 1,449 to 654 on the First Section, while 87 ended the day unchanged.
The turnover on the first trading day of the week came to 2,105.04 billion yen (20.27 billion U.S. dollars).
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