Nikkei is approaching its 30-year high, supported by hopes of a recovery

Japanese stocks rose Thursday, December 24th, to be around the corner from their highest levels in nearly three decades, as the distribution of the vaccine supports hopes for an economic recovery from the Covid-19 pandemic, while the shares of heavy machinery manufacturers gained on the background of a shift in policy towards cleaner energy.

The Nikkei stock index rose 0.54% to 26668.35 points, growing close to Monday’s peak of 26,905 points, which was its highest level since early 1991. The broader Topix index rose 0.51% to 1,774.27 points.

The distribution of Covid-19 vaccines strengthens hopes that an economic recovery could gain momentum next year despite headwinds caused by a more rapidly spreading strain discovered recently, and a delay in a US aid package linked to the pandemic.

Heavy machinery makers rose after the Nikkei newspaper reported that Japan’s new strategy to cut emissions will target a major increase in offshore wind power.