* Train operators, airlines, real estate firms surge
* Vaccination raises hopes of economic reopening
* Carmakers extend gains as investors snatch up value shares
* Last year's high-flyers crumble; Nitori down 4%
TOKYO, June 2 (Reuters) - Japanese shares ended higher on
Wednesday, supported by gains in the hospitality sector as a
pickup in vaccination drives boosted economic reopening hopes,
while shares of carmakers scaled new highs on stronger global
The Nikkei share average rose 0.46% to close at
28,946.14, while the broader Topix gained 0.84% to
While Japan last week extended its social restriction
measures to later this month, investors are looking beyond, with
signs of a pickup in vaccination fuelling their bets on economic
"Daily vaccination counts are now hitting about 500,000, so
we can hope that by mid-July, we could reach a level where new
infections should fall because enough number of people will have
been vaccinated," said Nobuhiko Kuramochi, market strategist at
Railway companies were among the best performers, with West
Japan Railway jumping 7.7% and East Japan Railway
Airliner ANA Holdings gained 3.2%, while rival
Japan Airlines climbed 3.5%.
The real estate sector was another strong performer, with
Sumitomo Realty & Development adding 4.3%, while Mitsui
Fudosan rose 5.2%.
Real estate investments trusts (REITs) were also in demand,
with their index TSE REIT Index rising 1.5% to
reach its highest level since March last year.
Automakers benefit from hopes of global demand recovery and
investors rushed to pick up value shares, which they believe
have more potential upside compared to expensive growth shares.
Honda Motor rallied 4.6% to hit a three-year high,
while Toyota Motor extended its uptrend to scale a
record high with gains of 2.2%.
On the other hand, investors also rotated out of shares that
had benefited from windfalls following the pandemic.
Furniture store operator Nitori Holdings lost 4.5%
to one-year low while medical equipment maker Sysmex
Drugmakers also came under pressure, with Daiichi Sankyo
dropping 1.6% and Ono Pharmaceutical down
1.0%, both hitting their lowest levels in more than a year.
(Reporting by Hideyuki Sano; Editing by Rashmi Aich)