Japan Shares Close Higher as Vaccinations Boost Hopes

Japanese shares closed higher on Thursday, as the broad Topix index hit its highest level in more than six weeks as the country’s vaccination campaign increased activity, raising hopes that the economy will recover from pandemic-related restrictions.

The Nikkei index rose 0.39% to 29,058.11 points, while the broader Topix index rose 0.84% to 1958.70 points, its highest level since April 19.

Japanese media reported that the number of people who received at least one dose of the vaccination exceeded ten million. The government aims to finish vaccinating most of its older citizens by the end of July.

Shares of railway companies advanced in heavy trading for the second day in a row, with East Japan Railways jumping 3.4%, and Central Japan Railways increasing 2.3%.

Other heavily traded sectors were auto stocks that gained momentum with the support of a strong recovery in global demand.

Toyota Motor shares rose 1.7%, while Honda Motor shares rose 2.1%, and Nissan Motor shares gained 1.5%.