Nikkei edges near 30-year high on recovery hopes, heavy machinery stocks' gains

WealthNavi

24/12/2020 06:29

TOKYO, Dec 24 (Reuters) - Japanese shares inched up on
Thursday to come within sight of a near three-decade high, as
vaccine rollouts buoyed hopes of an economic recovery from the
COVID-19 pandemic and heavy machinery stocks gained on a policy
shift to greener energy.
    Japan's Nikkei share average  .N225  rose 0.54% to
26,668.35, edging closer to Monday's high of 26,905, its highest
level since early 1991. The broader Topix  .TOPX  gained 0.51%
to 1,774.27.
    Rollouts of COVID-19 vaccines are propping up hopes that the
economic recovery can gain momentum next year, despite the
headwinds from a recently-found more infectious strain and a
delay in U.S. pandemic relief package. 
    The Nikkei is likely to be stable between 26,000 and 27,000
for the time being, said Yutaka Miura, senior technical
strategist at Mizuho Securities.
    "But if the dollar falls considerably below 103 yen, we
could see selling in Japanese shares," he added. 
    Aeon  8267.T  rose 3.5% to a record high after the retailer
revised its earnings outlook higher for the year to February, as
consumer confidence picked up after a coronavirus-induced slump.
 urn:newsml:reuters.com:*:nFWN2J20W8
    Heavy machinery firms gained after Nikkei newspaper reported
Japan's new zero emission strategy would target a massive
increase in offshore wind power.  urn:newsml:reuters.com:*:nL1N2J32NP
    IHI  7013.T  rose 5.9% and Kawasaki Heavy  7012.T  gained
3.4%.
    The positive mood also saw retail investors flocking to
recently-listed shares, with WealthNavi  7342.T  gaining 21%.
    On the other hand, Hino Motors  7205.T  tumbled 12.4% after
the truck maker said it would suspend production at two
factories in North America until next September due to problems
in U.S. engine certification testing process.  urn:newsml:reuters.com:*:nFWN2J302S 
    SoftBank Group  9984.T  dropped 1.7% after China launched an
investigation into Alibaba Group  9988.HK  for suspected
monopolistic behaviour and will summon its Ant Group to meet in
coming days.  urn:newsml:reuters.com:*:nL1N2J401V
    SoftBank Group is the biggest shareholder of the Chinese
e-commerce giant.
        

 (Reporting by Hideyuki Sano; Editing by Rashmi Aich)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))