Nikkei hits over 2-year high on Wall Street boost, focus on final U.S. election tally

TOKYO, Nov 5 (Reuters) - Japanese shares ended at a more
than two-year high on Thursday, buoyed by overnight Wall Street
gains, while focus remained on final tally for the U.S.
presidential election after several state results gave a narrow
lead to Democrat Joe Biden and a likelihood of divided Congress.
The benchmark Nikkei share average .N225 rose 1.73% to
close at 24,105.28, its highest since Oct. 3, 2018. The broader
Topix .TOPX gained 1.39% to 1,649.9.
Biden predicted a U.S. election win over President Donald
Trump after pivotal victories in Michigan and Wisconsin, but the
risk of a prolonged contested election remains as Trump's
campaign moved to file lawsuits and request for a recount in
many states. Analysts said stocks were supported by overnight Wall Street
gains as the likelihood of gridlock in Congress made investors
optimistic that major policy changes would be difficult to
enact. .N
Growth shares performed well, taking positive cues from
their U.S. counterparts.
"U.S. growth stocks were buoyed by a drop in U.S. long-term
interest rate as investor wariness eased over massive government
spending. This helped Japanese growth-oriented stocks to track
them higher," said Takashi Hiroki, chief strategist at Monex
Securities.
The Topix Growth index .TOPXG rose 2.46%, while the Topix
Value index .TOPXV inched 0.26% higher.
Banks .IBNKS.T and insurers .IINSU.T were down 1.03% and
1.44%, respectively, as they were hurt by overnight drops in
U.S. Treasury yields.
Pharmaceutical firm Eisai 4523.T jumped 17.91% to hit its
daily limit after the company and its partner Biogen Inc
BIIB.O moved closer to receiving the U.S. FDA's nod for their
Alzheimer drug. Subaru Corp 7270.T rose 0.31%, after the automobile
company raised its operating profit outlook as U.S. vehicle
sales rebounded more than it expected. Suzuki Motor 7269.T climbed 4.89% as its profit forecast
was higher than analysts' expectations. The Mothers Index .MTHR of start-up firm shares gained
nearly 3.2%, extending its rally from a more than 5% rise.