Japan Shares Close Higher With Growing bets on Recovery on Vaccine

Japanese stocks closed higher on Friday, May 28, as investors flocked to stocks linked to the wave of selling launched in the previous session by an adjustment by MSCI, while progress in the launch of vaccines raised risk appetite in hopes of a rapid economic recovery.

The Nikkei index rose 2.10% to 29149.41 points, to close above 29000 for the first time since May 10, while the broader Topky index rose 1.91% to 1947.44 points.

Nikkei posted a weekly gain of 2.94%, while Topix ended the week 2.24% higher.

Market participants said the rollout of COVID-19 vaccines contributed to positive sentiment, as investors hope that the ongoing vaccination campaign will help speed up the economic recovery.

The gains were led by the stocks related to the economic cycle, as the largest gains were made for the shares of non-ferrous metal manufacturers, steelmakers, and machinery companies, among 33 sub-indices on the main stock exchange.