TOKYO, Nov 27 (Reuters) - Japan's Nikkei stock average ended
at its highest since April 1991 on Friday as it rallied for the
fourth session in a row, buoyed by hopes of economic recovery
and strong corporate earnings, after progress in COVID-19
Nikkei rose 0.41% to close at 26,644.71. The index
has gained 15.96% this month, and is on track for its best
performance since January 1994. The broader Topix rose
0.47% to hit a 25-month high at 1,786.52.
On a weekly basis, the indexes rose 4.38% and 3.42%,
The rally was driven by progress in vaccine-related
developments, with many investors expecting their delivery next
year. Easing U.S. political uncertainty after President-elect
Joe Biden's transition to the White House and signs of pick-up
in the Chinese economy also lifted sentiment.
"Investors are growing confident about profit recovery in
the next financial year," said Takuya Hozumi, global investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
"When you think profits will rise 40-50% next year, the
current valuation do not look expensive."
Electronic parts manufacturers are benefiting from hopes for
increased demand related to electric vehicles, 5G communications
and other new technologies.
Nidec gained 4.2% while Murata Manufacturing
rose 1.4%, both hitting record highs. Keyence
Including many in the tech sector, growth shares led the
gains, with Topix Growth rising 0.72%, compared with
0.19% in Topix Value.
Ballpark operator Tokyo Dome Corp jumped 16.7%,
hitting daily limit, after the company said it will discuss a
take-over bid by property developer Mitsui Fudosan.
Mitsui Fudosan gained 1.9%.
Turnover surged to 3.407 trillion yen ($32.77 billion) on
trade due to index rebalancing.
Data from Japan Exchange Group showed foreign investors
bought about 600 billion yen of Japanese shares, including both
cash equity and futures, in their third consecutive week of net
($1 = 103.9700 yen)
(Reporting by Hideyuki Sano, Editing by Sherry Jacob-Phillips
and Rashmi Aich)