Nikkei index hits the highest level in a week, with the rise of retail stocks

Japan’s Nikkei share average touched a one-week high on Tuesday amid big gains in retail stocks after Takashimaya raised its earnings forecast and amid hopes for the return of high-spending Chinese tourists.

The financial sector stocks also continued their strong performance after the sudden decision of the Bank of Japan (the Central Bank) last week to raise the permissible ceiling for long-term bond yields.

The Nikkei index closed up 0.16 percent at 26,447.87 points, after reaching a session high of 26,620.49 points, which has not been recorded since December 20, when the central bank’s sudden decision led to the largest decline in the index in more than two months.

The broader Topix index rose 0.4 percent to 1910.15 points today, Tuesday, and had hit a one-week high of 1918.25 points.

Takashimaya, a diversified store management company, was the best performer on the Nikkei index, jumping 7.14 percent.

Market participants said that China’s decision to ease further restrictions imposed due to Covid-19 also revived hopes for higher sales to tourists coming to the country.

The retail sector index was the best performer among the Topix sectors, rising 2.53 percent.

It was followed by the banking sector index, which rose 1.9 percent, its highest level since February 2018.