Japanese shares end higher as vaccine progress spurs recovery bets

Kao

28/05/2021 08:04

TOKYO, May 28 (Reuters) - Japanese shares ended higher on
Friday, as investors swooped on stocks related to the sell-off
prompted by MSCI's reshuffle in the previous session, while a
steady vaccine rollout whetted risk appetite on hopes of a swift
economic recovery.
    The Nikkei share average  .N225  rose 2.10% to 29,149.41,
closing above the 29,000 level for the first time since May 10,
while the broader Topix  .TOPX  gained 1.91% to 1,947.44. 
    The Nikkei posted a weekly gain of 2.94%, while the Topix
closed the week 2.24% higher. 
    "The rise is too much today and the gains are not reflecting
the fundamental strength of the Japanese markets," Shuji Hosoi,
senior strategist at Daiwa Securities, said. 
    "This is a rebound from yesterday's sell-offs that were
related to MSCI's regular reshuffle as well as profit-taking
towards the end of the month." 
    The Nikkei snapped a five-day winning run in the previous
session, with a daily turnover swelling to the highest in more
than three years, as 29 names were dropped from the MSCI's main
index. 
    Rollouts of COVID-19 vaccines have contributed to positive
sentiment as investors hope a steady vaccination drive can help
accelerate economic recovery, market participants said. 
    The gains were led by cyclical shares, with nonferrous
metals makers  .INFRO.T , steel makers  .ISTEL.T  and machinery
makers  .IMCHN.T  gaining the most among the 33 sub-indexes of
the main bourse. 
    Railway-related stocks also advanced, with Central Japan
Railway  9022.T , the operator of the bullet trains connecting
Tokyo and Osaka, gaining 2.52% and East Japan Railway  9020.T 
rising 2.02%. 
    The stocks that gained the most among the top 30 core Topix
names were SoftBank Group  9984.T  up 3.66 %, followed by
Shin-Etsu Chemical  4063.T , rising 3.65%. 
    Kao Corp  4452.T , which lost 1.39%, was the worst performer
among the Topix 30, followed by Takeda Pharmaceutical  4502.T 
falling 1.21%.
    

 (Reporting by Junko Fujita, Editing by Sherry Jacob-Phillips)
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