TOKYO: Japan's Nikkei hit a more than 31-year high on Tuesday, with cyclical stocks rising the most, tracking overnight gains in major U.S. indexes, while progress in domestic vaccine rollouts raising hopes for an economic reopening also aided sentiment.
The Nikkei share average touched 30,795.78, its intraday high since August 1990, before ending the morning session up 0.38% at 30,562.42. The broader Topix gained 0.42% to 2,106.24.
"The difference between today and yesterday is that today's gain is led by a rebound of U.S. stocks," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.
"When economically sensitive (cyclical) stocks lead the U.S. market, that works favourably to the Japanese market because Japan has no big growth shares equivalent to GAFA, so the market can't take advantage of their gains."
Overnight, the S&P 500 ended a five-ay losing streak led by value shares that are set to benefit most from a resurging economy.
Insurance sector led gains among the Tokyo Stock Exchange's 33 industry subindexes, with a 2.97% rise, followed by refiners rising 1.61%, after oil prices rose to six-week highs.
Shippers gained 1.56%.
Japan shares slip from 3-decade high as global selloff fuels caution
Sentiment was also boosted by hopes for an economic reopening as Japan is on track to reach the vaccination levels of the United States and Europe. The government said on Tuesday more than 50% of Japanese population have been fully vaccinated.
Technology heavyweights SoftBank Group and Advantest tracked an overnight lower of the Nasdaq , falling 0.71% and 0.88%, respectively.
Showa Denko, up 6.53%, was the top gainer on the Nikkei, followed by Tokio Marine Holdings, which rose 5.43%, and Z Holdings, up 4.33%.
Konami Holdings Corp, losing 3.06%, was the worst performer on the Nikkei, followed by Pacific Metals, which fell 2.43%.
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