Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Japan's Nikkei closes above 30,000 on earnings rebound, economy growth hopes

Published 15/02/2021, 07:31
© Reuters.

By Stanley White
TOKYO, Feb 15 (Reuters) - Japanese shares surged on Monday
to close at over 30-year high on rising expectations for a
rebound in corporate earnings and economic growth.
The Nikkei index .N225 ended up 1.91% at 30,084.15,
reclaiming the psychologically important 30,000 level for the
first time since August 1990. Energy, healthcare, and industrial
shares led the gains. The broader Topix .TOPX rose 1.04% to 1,953.94 to close at
its highest since June 1991.
Shares of companies that have reported positive earnings
rose, as investors continued to bet on sectors expected to
perform well as the global economy recovers from the coronavirus
pandemic.
Japan is expected to start coronavirus vaccinations this
week, which is also supporting stock prices. However, Japanese
stocks have rallied 8% so far this month, and some analysts warn
that the market may be overheating.
"Stocks have risen so fast you could say they've broken the
speed limit," said Ayako Sera, market strategist at Sumitomo
Mitsui Trust Bank.
"Earnings growth has already been priced in for at least a
year from now. There is reluctance to chase the upside from
here, but stocks won't fall too much."
Equities also got a boost after data showed Japan's gross
domestic product grew faster than expected in the fourth
quarter. The stocks that gained the most among the top 30 core Topix
names were Daiichi Sankyo Co Ltd 4568.T up 3.6%, followed by
Fanuc Corp 6954.T , up 3.39%.
The underperformers among the Topix 30 were Hitachi Ltd
6501.T down 0.94%, followed by Kao Corp 4452.T that lost
0.48%.
There were 163 advancers on the Nikkei index against 59
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.15 billion, compared to the average of
1.26 billion in the past 30 days.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.