Japan’s Nikkei Index Jumps to The Highest Level in Nearly Three Decades

Japan’s Nikkei index reached its highest level in nearly three decades on Monday, November 9, after Joe Biden won the US presidency, while Honda Motor shares led the gains among carmakers thanks to strong earnings numbers.

Investors, who were reluctant to buy last week due to political uncertainty in the United States, have rushed to buy as they focus on Biden’s ability to expand fiscal stimulus and take measures to reduce the spread of COVID-19.

The Nikkei Index rose 2.12% to 24,839.84 points, its highest closing level since November 1991, and has gained 8.1% in the past five sessions. The broader TOPIX index rose 1.41% to 1681.90 points, a level not recorded since late February.

Honda Motor Co gained 9.4% after the automaker reported strong quarterly profits and raised its earnings outlook.

Toyota Motor shares, which announced its earnings on Friday, extended gains, up 2.2%, but Mazda Motor bucked the trend by declining 2.9% after announcing disappointing earnings. Transport equipment companies gained 2.4%.