TOKYO, Jan 8 (Reuters) – Japanese stock entered Friday’s 30-year high in hopes of further fiscal stimulus under incoming U.S. President Joe Biden and a positive outlook for semifinal demand stimulates investor appetite for riskier assets.
The Nikkei 225 Index rose 1.49% at 27,900.64 before 0200 GMT. The benchmark index peaked since August 1990 shortly after the opening bell, with technology, raw materials, and banking sectors leading the way.
The broader Topix rose 0.89% to 1,842.67, reaching its highest level since February 2018.
Ideas for global equality received a major boost this week after Biden Democrats took control of the U.S. Senate in streaming elections, which will make it easier for his government to use large-scale fiscal spending to stimulate the economy.
Moreover, the outlook for the tech sector has been significantly clarified after semiconductor manufacturers Samsung Electronics Co Ltd and Micron Technology Inc forecast strong profit and revenue.
“We should expect more fiscal costs and more deficits under Biden,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co.
“We have a reflationary trade, because we have a weak dollar, stronger quotas, higher long-term output, and higher commodity prices.”
The stocks that gained the most among the top 30 Topix Murata Manufacturing Co Ltd were up 3.4%, followed by Daikin Industries Ltd rising 2.95%.
The Topix index for electrical appliance manufacturers, which includes many semifinals-related shares, rose 1.94% to its highest level since May 2000.
The runners-up among Hoya Corp’s Topix 30 were down 1.79%, followed by Central Japan Railway Co. losing 0.14%.
The Nikkei index had 162 promoters against 56 rejections.
The volume of shares traded on the Tokyo Stock Exchange’s main board was 0.58 billion, compared to an average of 1.19 billion in the last 30 days. (Reporting by Stanley White, Edited by Sherry Jacob-Phillips)