Nikkei closes at near 3-decade high as Biden edges closer to win

TOKYO, Nov 6 (Reuters) - Japan's Nikkei index on Friday
ended at its highest level in 29 years, tracking strong moves in
global equities, as investors hoped a gridlock in U.S. Congress
during a possible Joe Biden presidency would be able to stall
major policy changes.
The benchmark Nikkei share average .N225 closed 0.91%
higher at 24,325.23. It marked the highest closing level since
November 1991 when markets were in the midst of a crash after
Japan's bubble economy collapsed.
The broader Topix .TOPX gained 0.52% to 1,658.49.
"Thinking back (about the bubble economy era), the Nikkei
share average levels were quite high, but the index has finally
returned to that level," Masahiro Ichikawa, chief market
strategist at Sumitomo Mitsui DS Asset Management said.
For the week, both the indexes gained more than 5% each to
mark their biggest weekly gains since late-May.
"Equity prices are tracking U.S. stocks higher amid a slight
euphoria in the market that Biden is almost certain to win the
presidential election," said Ayako Sera, market strategist at
Sumitomo Mitsui Trust Bank, noting that the market shrugged off
a stronger yen against the dollar.
Investors are anticipating a Joe Biden victory and the
Republicans retaining control of the Senate, allowing the latter
to block the Democrats' agenda such as corporate tax hikes and
massive borrowing for large spending.
While the election outcome hinged on a dwindling set of
uncounted votes in a handful of battleground states, Biden
maintained an edge over Trump. But uncertainty still loomed as
the Republican incumbent mounts legal challenges to vote counts.
"The outcome of the election has not been confirmed... It is
necessary to take a cautious stance from here on," Masahiro
Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset
Management said.
Among gainers in top 30 core Topix names, Daikin Industries
6367.T jumped 5.44% after it raised net profit forecast for
the year ending March 2021. Toyota Motor 7203.T gained 0.5% after it more than doubled
its full-year operating profit forecast. Nintendo 7974.T pared early gains to close down 0.17%
after it hiked annual operating profit outlook. Eisai 4523.T was up 3.7% on expectations that the company
and its partner Biogen Inc BIIB.O moved closer to receiving
the U.S. FDA's nod for their Alzheimer drug.