TOKYO, Dec. 24 (Reuters) – Japanese shares stepped in Thursday to enter a nearly three-year view, while vaccine releases pushed economic recovery from loose stocks and machinery heavy COVID-19 received on policy shift to greener energy.
Japan’s Nikkei share average rose 0.54% to 26,668.35, approaching Monday’s high of 26,905, the highest level since early 1991. The broader Topix gained 0.51% to 1,774.27.
Distribution of COVID-19 vaccines raises hopes that economic recovery will gain momentum next year, despite the headlines from a more recently discovered more contagious strain and a delay in US pandemic relief package.
The Nikkei is likely to be stable between 26,000 and 27,000 at the moment, said Yutaka Miura, a senior technical expert at Mizuho Securities.
“But if the dollar falls well below 103 yen, we will see sales in Japanese shares,” he said.
Aeon rose 3.5% to a high after the retailer revised its earnings outlook higher for the year to February, as consumer confidence rose following a downturn caused by coronavirus.
Heavy machinery companies acquired after Nikkei newspaper said Japan’s new zero-distribution strategy would focus on a major increase in offshore wind power.
IHI rose 5.9% and Kawasaki Heavy gained 3.4%.
The positive sentiment also saw retail investors move to recently listed shares, with WealthNavi gaining 21%.
Hino Motors, on the other hand, fell 12.4% after the truck manufacturer said it would suspend production at two North American factories until next September due to difficulties in the U.S. engine certification certification process.
SoftBank Group fell 1.7% after China launched an investigation into Alibaba Group for suspicious monopolistic behavior and will call their Ant group to meet in the coming days.
SoftBank Group is the largest shareholder of the Chinese e-commerce giant.
Reciting with Hideyuki Sano; Edited by Rashmi Aich