Japan shares extend rally, end at 29-1/2-year high on U.S. stimulus, vaccine hopes
02/12/2020 07:15
TOKYO, Dec 2 (Reuters) - Japan's Nikkei share average closed
at a 29-1/2-year high on Wednesday, buoyed by hopes of a U.S.
stimulus package and progress in a COVID-19 vaccine, but gains
were capped by some profit-taking after a strong November rally.
Nikkei .N225 ended up 0.05% at 26,800.98, its highest
closing since April 1991, extending its bull run after U.S.
elections. The broader Topix .TOPX rose 0.32% to 1,773.97,
edging near a two-year peak touched last Friday.
"With the Nikkei so close to 27,000, investors are getting a
bit cautious. We've priced in a lot of good news. But I don't
think the market will fall that much either," said Naoya
Oshikubo, senior economist at Sumitomo Mitsui Trust Asset
Management.
Sentiment was also fuelled as U.S. politicians put forth a
flurry of proposals on coronavirus relief packages after a
month-long partisan standoff. urn:newsml:reuters.com:*:nL1N2IH1OT
Hopes that vaccines can reduce the need for strict social
restrictions next year also underpinned the market, especially
value shares.
Honda Motor 7267.T rose 5.1% while retailer Seven&i
Holdings 3382.T climbed 3.3% and Takeda Pharmaceutical
4502.T added 2.9%.
Topix value .TOPXV rose 1.01%, outperforming 0.32% gains
in growth shares .TOPXG .
The Nikkei's gains were checked by a 4.8% drop in Recruit
Holdings 6098.T , after the recruitment advertiser said its
shareholders would sell 416.8 billion yen ($4 billion) worth of
shares in the company to overseas investors. urn:newsml:reuters.com:*:nL4N2IG1T0
Some other large-cap growth shares were bruised by
profit-taking, with both Sony 6758.T and Hoya 7741.T losing
2.0% each.
Ito en 2593.T lost 3.8% after the beverage firm cut its
annual net profit outlook by more than a half.
Nishimatsuya Chain 7545.T dropped 2.7% after the retailer
of kids clothes' earnings upgrade prompted profit-taking from
the shares' 60% gains so far this year.
Workman 7564.T fell 5.0% after the clothing retailer's
November sales grew 8.6% but came in short of market
expectations.
(Reporting by Hideyuki Sano, Editing by Sherry Jacob-Phillips
and Rashmi Aich)
((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))