Japan Shares Closed 29-year Peak on Rebound in Economic Growth

Japanese stocks touched their highest level in 29 years Monday, November 16, after the economy grew for the first time in four quarters and in light of progress towards a vaccine for Covid-19.

The benchmark Nikkei Index closed 2.05% higher at 25,906.93 points, its highest close since June 1991. The broader Topix index added 1.68% to 1731.81 points.

Japan’s economy grew at a faster than expected annual rate of 21.4% between July and September, after shrinking 28.8% between April and June.

The sentiment was also boosted after Chinese data showed factory production in the world’s second-largest economy grew faster than expected last month and retail sales accelerated, as the recovery momentum from the recession caused by COVID-19.

optimism about a vaccine overshadowed the increase of Covid-19 cases globally, after encouraging news from Johnson & Johnson. The US drugmaker launched an advanced stage of vaccine testing today, following promising developments from Pfizer and Moderna.