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

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.
Getting 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. With 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)