By Stanley White
TOKYO, Nov 16 (Reuters) - Japanese stocks touched a 29-year
high on Monday after the economy posted its first expansion in
four quarters and as progress in developing a COVID-19 vaccine
continued to lift global markets.
The Nikkei 225 Index .N225 was up 1.54% at 25,776.56 by
0200 GMT. At the open of trade, the Nikkei jumped to the highest
since June 1991. The broader Topix .TOPX gained 1.31% to
1,725.56.
Japan's economy grew at an annualized 21.4% clip, beating a
median market forecast for an 18.9% gain, Cabinet Office data
showed on Monday, marking the first increase in four quarters
and followed a 28.8% plunge between April-June. Vaccine optimism outshone worries about rising coronavirus
cases globally, with news from Johnson & Johnson JNJ.N giving
markets a further boost. The U.S. drugmaker launched a
late-stage trial of its vaccine in Britain on Monday, shortly
after promising developments from Pfizer PFE.N and Moderna Inc
MRNA.O about work on their respective drug studies.
Though some analysts advise caution in the near term as the
United States and Europe are reintroducing restrictions to
contain a recent surge in new infections, which could cause a
brief spell of increased market volatility.
The stocks that gained the most among the top 30 core Topix
names were Mitsubishi UFJ Financial Group Inc 8306.T up 3.99%,
followed by Honda Motor Co Ltd 7267.T gaining 3.64%.
The underperformers among the Topix 30 were Nintendo Co Ltd
7974.T down 1.38%, followed by Takeda Pharmaceutical Co Ltd
4502.T losing 1%.
Shares of Rakuten 4755.T rose 2.65% after the internet
commerce company said it will team up with private equity firm
KKR KKR.N to buy a controlling stake in Japanese retailer
Seiyu. There were 206 advancers in the Nikkei index against 16
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.58 billion, compared with the average
of 1.12 billion in the past 30 days.