Nikkei Index Closes Near Its 29-And-a-Half Year High Thanks to Vaccine Hopes And Stimulus

Japan’s Nikkei index closed Tuesday, December 1, near its 29-and-a-half-year high, tracking gains in US equity futures thanks to growing optimism that major pharmaceutical companies will introduce a coronavirus vaccine before the end of the year.

The benchmark Nikkei Index rose 1.34% to close at 26,787.54 points, near its highest level since April 1991, and reached earlier in the session. The broader Topix index rose 0.77% to 1,768.38 points.

Shares of brokerage firms in securities, non-ferrous metals and mineral products led the gains on the main exchange.

Japanese stocks began their activity on the rise after Moderna said it had applied for an urgent US license for its Covid-19 vaccine. The Moderna vaccine is the second candidate likely to receive potential US approval for distribution this year.

In addition, the Japanese government pledged to gather a stimulus package to help the economy limit the short-term economic impacts of the latest spike in coronavirus infections. Japanese stocks were also supported by gains in US equity futures, which rose more than 0.8% in Asian trade, and strong data on factory activities in China.