Nikkei rallies to 29-year high, Honda leads carmakers on upbeat earnings

By Hideyuki Sano
TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average on
Monday reached a high last seen almost three decades ago, after
Joe Biden secured a victory in the U.S. Presidential election,
with Honda Motors 7267.T leading gains among carmakers after
strong quarterly numbers.
Investors, who had held off buying last week due to U.S.
political uncertainty, are rushing to buy as they focus on
Biden's ability to expand fiscal stimulus and measures to reduce
the spread of COVID-19. The Nikkei hit an intraday high of 24,678.62 .N225 ,
breaking above its 2018 peak of 24,448 to reach its highest
level since November 1991. The broader Topix .TOPX also gained
0.77% to 1,671.32, a level last seen in late February.
Honda Motor 7267.T jumped as much as 9% after the carmaker
revised up its earnings outlook. Transport equipment maker index .ITEQP.T gained 2.8% with
Toyota Motor Corp 7203.T , which announced its earnings on
Friday, also extending gains by 2.8%.
"Corporate earnings are recovering more than expected. It
also means a lot for the Japanese market that car makers are
showing a strong recovery," said Takuya Hozumi, global
investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
"In addition, Eastern Asian shares, including Japan, were
helped by the relatively contained level of coronavirus
infections," he added.
Sushiro Global 3563.T jumped 12% after the sushi
restaurant chain operator reported a better-than-expected profit
in the July-September quarter, recovering from a slump triggered
by the epidemic in the preceding quarter.
Renewable energy-related firms also soared following Biden's
victory. Renova 9517.T gained 6.6% while West Holdings
1407.T jumped 10% and Erex 9517.T rose 7.3%.
On the other hand, Japan Airlines 9201.T fell as much as
15.5% to touch its lowest level since its listing in 2012 after
the company floated its plans to sell new shares to raise about
$1.6 billion. Rival ANA 9202.T also felt the heat and dropped
3.5%.
Eisai 4523.T dived 24% after a panel to U.S. regulator
voted that a potential Alzheimer's treatment from the firm and
Biogen Inc BIIB.O has not been proven to slow progression of
the disease. (Editing by Sherry Jacob-Phillips)