TOKYO, Jan 7 (Reuters) – Japanese shares came to a higher end Thursday, with the Nikkei touching a 30-year high, driven by finances as U.S. bond yields focused on hopes of greater stimulus after a Democrat sweep in two runaways in the Georgia Senate.
The Nikkei average closed 1.60% higher at 27,490.13, hitting a record high since August 1990 at one point during the session and scaling a four-day missed streak.
The broader Topix added 1.68% to 1,826.30, climbing above a peak at the end of last year to reach its highest level since October 2018.
The investor’s desire was not thwarted by the uproar in Washington DC after supporters of President Donald Trump stormed Capitol Hill, forcing Congress to cancel a session to determine impact President Joe Biden.
“It simply came to our notice then. But no-one thinks this will ruin the election results, ”said Takashi Hiroki, Monex’s chief strategist.
A sharp rise in U.S. bond yields pushed up shares of Japanese banks and insurers, major investors in U.S. debt.
Dai-ichi life assurance rose 7.4%. Among banks, SMFG gained 5.5%, while Mizuho added 3.3% and Mitsubishi UFJ rose 3.5%.
Cycling shares, also found another value in hopes of an incentive package from the incoming U.S. Biden administration.
Steelmakers gained 5.2%, with Nippon Steel rising 7.8%. Shipbuilder Hitachi Zosen raised 13.7%.
Democratic influence in the Senate reduced renewed appetite in renewable energy stocks, with Renova jumping 10.6% to its peak.
Sections related to domestic hobbies, such as railway companies, broke back even as the government looked at a one-month crisis imposed in Tokyo and three neighboring prefectures to prevent a spike in COVID-19 cases.
“The economic impact would be much smaller than previous statements as it is limited to Tokyo and there will be limited restrictions,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Fund Management.
SoftBank Group fell 1.6% after the news that the Trump administration is considering adding Alibaba Group Holding Ltd to their trading blacklist of Chinese companies.
Softbank Group is the largest shareholder of the Chinese e-commerce giant. (Reporting by Hideyuki Sano; Editing by Ramakrishnan M.)