Nikkei hits 30-year high, financials boost Topix after Georgia runoffs

TOKYO, Jan 7 (Reuters) - Japanese shares rose to multi-year
highs on Thursday, powered by financials as U.S. bond yields
climbed on hopes of larger debt-financed stimulus following a
Democrat sweep in two Senate runoffs in Georgia.
The Nikkei average .N225 rose 1.91% to 27,571.87 by late
morning, briefly hitting its highest level since August 1990.
The broader Topix .TOPX added 2.24% to 1,836.37, climbing
above a peak hit late last year to reach its highest level since
October 2018.
Investor appetite was not dented by the chaos in Washington
D.C. after supporters of President Donald Trump stormed Capitol
Hill, forcing Congress to suspend a session to certify
President-elect Joe Biden's victory.
"That seemed like the ultimate epitome of four years of
Trump's presidency. But no one thinks the election results will
be overthrown by this," said Takashi Hiroki, chief strategist at
Monex.
Sharp rises in U.S. bond yields boosted shares of Japanese
banks and insurers, big investors in U.S. debt.
Dai-ichi Life Holdings 8750.T rose 8.5% and T&D Holdings
8795.T gained 8.6%.
Among banks, SMFG 8316.T gained 5.0%, while Mizuho
8411.T added 4.8% and Mitsubishi UFJ 8306.T rose 3.7%.
Other cyclical, value shares also gained on hopes of a
stimulus package from the incoming Biden U.S. administration.
Topix Value Index .TOPXV gained 2.6%, outperforming 2.0%
rise in Topix Growth .TOPXG .
Steelmakers .ISTEL.T gained 5.3%, with Nippon Steel
5401.T rising 7.5%. Ship builder Hitachi Zosen 6501.T surged
13.5%.
Domestic leisure-related shares, such as railway companies
.IRAL.T , bounced back even as the Japanese government looked
set to declare a state of emergency for the greater Tokyo area
on rising COVID-19 infections. "The economic impact would be much smaller than previous
declarations as it is confined to Tokyo and restrictions will be
limited," said Hiroyuki Ueno, chief strategist at Sumitomo
Mitsui Trust Asset Management.
SoftBank Group 9984.T dropped 1.6% after the news that the
Trump administration is considering adding Alibaba Group Holding
Ltd 9988.HK to its trade blacklist of Chinese companies.
Softbank Group is the largest shareholder of the Chinese
e-commerce giant.