Japan’s Topix at Its Highest Level Since 1990

Japan’s Nikkei hit a six-month high, and the broader Topix touched its highest level since 1990, continuing its rally since the end of August on hopes of a new government formation and a further improvement in profits. News that US President Joe Biden and his Chinese counterpart Xi Jinping held phone talks also supported the rise by allaying concerns about existing Sino-US tensions.

The Nikkei index rose 1.25 percent to 30,381.84 points, the ninth session of gains in the past ten sessions. On the week, it rose 4.3 percent.

The Topix index rose 1.29% to 2,091.65 points.

Hopes that a new leader of Japan’s ruling party would give an economic stimulus and a decisive victory in the elections boosted stock prices after Prime Minister Yoshihide Suga offered to resign last week.

The profit outlook for Japanese companies has also improved recently as the pace of vaccination in the country approaches that of other developed countries.

Financial sectors were among the biggest gainers after SBI Holdings announced an offer to buy a near-majority stake in Shinsei Bank.