Japan Shares Jumped on Recovery Hopes

Japanese stocks jumped, ending a three-day losing streak, as optimism about the economy’s recovery from the pandemic prompted new purchases of materials companies, those related to travel, and cheap ones linked to the economic cycle.

The benchmark Nikkei index rose 0.46% to 30,156.03 points, while the broader Topix index gained 0.49% to 1938.35 points.

Investors snapped up low-cycle-related stocks, including Yokohama Rapper and Sumitomo Metal, which rose 8.9% and 7.2%, respectively.

Travel-related stocks also advanced as investors bet on the continued recovery of the global economy in light of the growing momentum of Covid-19 vaccination programs around the world.

Shares in airline ANA Holdings rose 5.8%, while rival Japan Airlines (Japan Airlines) added 5.7%. Shares of store operating companies also rebounded, with retailer J. Front climbing 2.4% and Takashimaya increasing 1.6%.

Chip-related shares continued to perform well, with Tokyo Electron jumping 6.3%.

The rise in US bond yields also pushed the shares of Japanese financial companies up, and those companies are benefiting from the increase in interest income. The banking sector index rose 1.8% and the insurance companies index added 0.8%.