Tokyo: Shares end higher as train operators, beer makers jump on vaccine hopes

[TOKYO] Japanese shares closed higher on Thursday, with the broad Topix index hitting a more than six-week high, as a pickup in the country's vaccination drive raised hopes of the economy recovering from the shackles of the pandemic.

The Nikkei share average rose 0.39 per cent to 29,058.11 while the broader Topix clinched a 0.84 per cent gain to 1,958.70, hitting its highest level since April 19.

"Vaccinations are moving much faster than expected, boosting hopes of reopenings," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.

The number of people who have had at least one shot has topped 10 million, Japanese media reported. The government aims to finish vaccinating most elderly citizens by the end of July.

Railway companies rose in heavy trade for a second day in a row, with East Japan Railway jumping 3.4 per cent and Central Japan Railway adding 2.3 per cent.

Reopening bets boosted Tokyo Disney Resort operator Oriental Land, which added 1.4 per cent, as well as beer and beverage makers.

Kirin Holdings rose 4.2 per cent while Asahi Group inched up 2.3 per cent. Suntory jumped 5.6 per cent.

Another heavily-traded sector was car makers, which have been gaining momentum on strong demand recovery worldwide.

Toyota Motor gained 1.7 per cent, while Honda Motor rose 2.1 per cent and Nissan Motor picked up 1.5 per cent.

Food company Ajinomoto vaulted 3.5 per cent to a five-year high as it extended its bull runs since its latest earnings and share buyback announcement last month.

On the other hand, Fast Retailing lost 4.1 per cent after the operator of Uniqlo casual clothing change said its domestic sales declined 0.6 per cent in May from a year a earlier, the first fall in a year.

The sizable drop in Fast Retailing, which has the biggest weight in the Nikkei, curbed the Nikkei's gains compared to Topix.

Elsewhere, some of this year's biggest gainers also dropped on profit-taking, with shippers subindex down 1.1 per cent and steelmakers falling 0.3 per cent.

REUTERS