Japan Stocks Extend Gains to Close at The Highest Level in 30 Tears

Japanese stocks rose to a 30-year high today, Tuesday, as progress in the distribution of anti-virus vaccines boosted expectations that the global economy is on the verge of a strong recovery.

The benchmark Nikkei index rose 1.28% to 30,467.75, closing at its highest level since August 1990.

The broader Topix index rose 0.57% to 1965.08, during the session, its highest level since June 1991.

Japanese stocks followed the impact of the rise of global stock markets in a rapid rally as money flows into riskier assets in anticipation of a rapid improvement in economic growth and corporate earnings, but analysts are concerned that the recent gains will not last.

The latest announcements of corporate earnings have been favorable, and Japan is expected to begin vaccination against the Coronavirus this week.

Moreover, Bank of Japan Governor Haruhiko Kuroda said today that the latest rally in stocks is a reflection of global expectations, ignoring views that the bank’s monetary policy is feeding a bubble.

SoftBank Group topped the list of gainers among the 30 main stocks on the Topix index, up 4.15%, followed by Hoya Corp, which rose 3.79%.

The lowest performing stocks were Toyota Motor, which fell 1.81%, followed by Dai-ichi Sankyo, which fell 0.56%.