Tokyo stocks finish higher with both key indexes hitting 31-year high

2021-09-14 10:05:07 GMT2021-09-14 18:05:07(Beijing Time) Xinhua English

TOKYO, Sept. 14 (Xinhua) -- Tokyo stocks finished higher on Tuesday, with the Nikkei and Topix indexes ending at their highest levels in 31 years, as Japan's vaccination progress for COVID-19 was catching up with other developed economies, boosting expectations for broader economic activities.

The 225-issue Nikkei Stock Average closed 222.73 points, or 0.73 percent, higher from Monday at 30,670.10, its highest finish since Aug. 1, 1990.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 21.16 points, or 1.01 percent, higher at 2,118.87, its highest close since Aug. 3, 1990.

Trading volume on the main section increased to 1,339.01 million shares from Monday's 1,135.44 million shares.

After the Japanese government said that over 50 percent of the country's population has been fully vaccinated against the COVID-19, Tokyo stocks opened high in the morning and stayed in positive territory all day, with the Nikkei index briefly surging over 300 points.

Investors started to expect a release of restrictions in the restaurant, retail, and tourism sectors in particular following the progress in inoculations, brokers said.

"With fewer daily COVID-19 cases recently in the United States and Japan, investors view both economies as on track to return to normal," said Toshikazu Horiuchi, an equity strategist at IwaiCosmo Securities.

Gains on Tuesday resumed momentum for the recent upward trend in the Tokyo market, after Japanese Prime Minister Yoshihide Suga's announcement of not running in the leadership race of the ruling Liberal Democratic Party (LDP).

Brokers said Suga's announcement fueled strong buying by foreign investors who had been net-sellers recently as it raised hopes that Suga's successor would come up with a fresh stimulus package.

The winner of the LDP's presidential election on Sept. 29 is set to become Japan's new prime minister as the party controls the House of Representatives. The general election is expected to be held later this year.

By the close of play, 29 out of 33 sectors of the Nikkei subindex ended higher, with insurance, marine transportation, oil and coal product, retail, and restaurant shares heading the upward trend.

Advancing issues outnumbered declining ones 1,707 to 380 on the First Section, while 101 finished unchanged.

Due to expectations of tighter supply since productions might be disrupted by Hurricane Ida and another tropical storm expected to hit Texas, U.S. crude oil futures increased to their highest levels in a month, which supported the increase of oil-related issues on Tuesday.

Among them, refiners Eneos Holdings finished up 1.3 percent, Idemitsu Kosan increased 3.3 percent, and Cosmo Energy Holdings jumped 4.5 percent.

Directly benefiting from expected high vaccination coverage, restaurant operators Royal Holdings and Watami climbed 1.3 percent and 1.2 percent, respectively. Leisure activities related shares also ended higher, with the Tokyo Disney Resort operator Oriental Land gaining 3.4 percent, travel agencies H.I.S. rising 3.2 percent, and Knt-Ct Holdings ending up 3.0 percent. Enditem