TOKYO, May 28 (Reuters) - Japanese shares ended higher on
Friday, as investors swooped on stocks related to the sell-off
prompted by MSCI's reshuffle in the previous session, while a
steady vaccine rollout whetted risk appetite on hopes of a swift
The Nikkei share average rose 2.10% to 29,149.41,
closing above the 29,000 level for the first time since May 10,
while the broader Topix gained 1.91% to 1,947.44.
The Nikkei posted a weekly gain of 2.94%, while the Topix
closed the week 2.24% higher.
"The rise is too much today and the gains are not reflecting
the fundamental strength of the Japanese markets," Shuji Hosoi,
senior strategist at Daiwa Securities, said.
"This is a rebound from yesterday's sell-offs that were
related to MSCI's regular reshuffle as well as profit-taking
towards the end of the month."
The Nikkei snapped a five-day winning run in the previous
session, with a daily turnover swelling to the highest in more
than three years, as 29 names were dropped from the MSCI's main
Rollouts of COVID-19 vaccines have contributed to positive
sentiment as investors hope a steady vaccination drive can help
accelerate economic recovery, market participants said.
The gains were led by cyclical shares, with nonferrous
metals makers, steel makers and machinery
makers gaining the most among the 33 sub-indexes of
the main bourse.
Railway-related stocks also advanced, with Central Japan
Railway, the operator of the bullet trains connecting
Tokyo and Osaka, gaining 2.52% and East Japan Railway
The stocks that gained the most among the top 30 core Topix
names were SoftBank Group up 3.66 %, followed by
Shin-Etsu Chemical, rising 3.65%.
Kao Corp, which lost 1.39%, was the worst performer
among the Topix 30, followed by Takeda Pharmaceutical
(Reporting by Junko Fujita, Editing by Sherry Jacob-Phillips)