Nikki Reaches a Peak of 30 Years And Financial Sector is The Top Performer

Japanese shares closed higher on Thursday, while the Nikkei index hit a 30-year high with the support of financial stocks, as US Treasury yields rose thanks to hopes of greater stimulus following a Democratic sweep in a two-seat Senate election in Georgia.

The Nikkei index closed more than 1% higher at more than 27,000 points, reaching its highest level since August 1990 during the session and ending a four-day losing streak.

The broader Topix index rose more than 1% to 1,826 points, surpassing its peak late last year, its highest since October 2018.

Investors’ appetite was not affected by the chaos in Washington, DC, after loyalists of US President Donald Trump swept the US Congress, forcing him to suspend a session to ratify the victory of President-elect Joe Biden.

Shares of Japanese banks and insurance companies, which are major investors in US debt, received a boost after US bond yields rose strongly.

Insurance company Dai-ichi Life Holdings rose more than 7%. Among banks, Sumitomo Mitsui Financial Group gained more than 5%, while Mizuho added more than 3%, and Mitsubishi Financial Group rose more than 3%.

SoftBank Group shares fell more than 1% after news that the Trump administration was considering adding Alibaba Group Holding Group to a commercial blacklist of Chinese companies.

Softbank is the largest shareholder in the Chinese e-commerce giant.