TOKYO: Japanese stocks staged a late comeback to take the Topix to a three-decade peak on Monday, buoyed by optimism around a change in the country’s prime minister and easing COVID-19 infections.

The Topix crossed into positive territory in the final 20 minutes of trading and ended the day up 0.29% at 2,097.71, the highest close since 1990. That extended a scorching three-week, 11% rally.

The Nikkei share average rose 0.22% to 30,447.37, marking an almost seven-month closing high.

The gains came despite weakness in global equities overall. An index of Asia-Pacific shares excluding Japan slid 1%, in line with Wall Street’s declines from Friday. “There is some caution about how high Japanese stock prices are after last week’s sudden gains, but retail investors in particular have a strong desire to buy,” said a market participant at a domestic securities firm. “Foreign investors are also buying.” Iron and steel was the best-performing Topix sector, followed by oil and coal producers adding 1.56% and 1.48%, respectively, as commodity prices surged.

Banking was the third-best performer, up 1.07%, as Shinsei Bank rallied for a second day, rising 12.99%.