Japan shares end near 29-yr peak as vaccines, stimulus draw closer

By Stanley White
TOKYO, Dec 3 (Reuters) - Japan shares held close to a
29-1/2-year high on Thursday as major countries moved closer to
rolling out coronavirus vaccines, while hopes of more stimulus
also boosted sentiment.
The Nikkei 225 Index .N225 ended up a modest 0.03% at
26,809.37, but settled near its highest since April 1991, while
the broader Topix .TOPX rose 0.07% to 1,775.25.
Real estate, consumer cyclicals, industrial companies, and
financials rose in a sign that investors are betting on sectors
that will benefit most from a revival in economic growth.
Britain on Wednesday became the first western country to
approve Pfizer Inc's PFE.N COVID-19 vaccine and said it would
start immunization early next week, while U.S. authorities plan
to begin vaccinations by mid-December. In addition, Japan's government has committed to more fiscal
spending and U.S. President-elect Joe Biden has pledged to act
swiftly on stimulus measures. "There are reflationary elements in the global economy that
will benefit Japanese equities," said Masayuki Kichikawa, chief
macro strategist at Sumitomo Mitsui Asset Management Co.
"But we need to continue to hear good news about the vaccine
and see no policy mistakes."
The Nikkei has rallied 17% since the end of October on
vaccine-related developments and more supportive policies from a
Biden administration, but some analysts warned Japanese stocks
may be overheating.
The stocks that gained the most on Thursday among the top 30
core Topix names were Central Japan Railway Co 9022.T up
2.55%, followed by Mitsui & Co Ltd 8031.T rising 2.13%.
The underperformers among the Topix 30 were Hoya Corp
7741.T down 4.26%, followed by Daiichi Sankyo Co Ltd 4568.T
losing 3.89%.
There were 126 advancers on the Nikkei index against 97
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.23 billion, compared to the average of
1.3 billion in the past 30 days.