TOKYO: Tokyo stocks saw their eighth straight winning session Wednesday on hopes for a fresh stimulus package from a new prime minister, while a cheap yen offset profit-taking.
The benchmark Nikkei 225 index added 0.89 percent, or 265.07 points, to 30,181.21, ending above the 30,000 mark for the first time since April.
The broader Topix index rose 0.79 percent, or 16.23 points, to 2,079.61.
The dollar stood at 110.41 yen, against 110.30 yen in New York late Tuesday.
The Nikkei rose as heavily weighted SoftBank Group jumped 4.64 percent to 7,265 yen, after the investment giant announced a partnership deal with Deutsche Telekom, including taking a 4.5 percent stake in the German giant. The Tokyo market started in the negative region, but bargain-hunters arrived to lift share prices.
“Foreign investors are returning to buy Japanese shares,” Okasan Online Securities said.
Investors are focused on the race to decide the next leader of Japan’s ruling Liberal Democratic Party (LDP), currently headed by Prime Minister Yoshihide Suga. Unpopular Suga has said he will not seek re-election, prompting the market to speculate that the next party leader will announce a fresh stimulus programme.
“The state of the LDP leadership race remains liquid, but hopes for (economic) policies and the current falling trend of daily coronavirus infection numbers” are encouraging overseas investors, Okasan said.
But the fast pace of the rise in Tokyo shares also pushed some investors to lock in profits, the brokerage added.
Among major shares, Advantest, which makes testing kits for semiconductors, rose 3.41 percent to 10,600 yen.
Construction equipment maker Komatsu added 1.34 percent to 2,874.5 yen, while Nippon Steel rose 0.50 percent to 2,323 yen. Sony slipped 0.13 percent to 11,970 yen. Uniqlo operator Fast Retailing fell 0.08 percent to 75,890 yen.
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