Tokyo: Shares jump on Fed's growth projection, Topix at 30-year high

[TOKYO] Japanese shares jumped on Thursday, with the Topix index hitting a 30-year high, propelled by the US Federal Reserve's projection for a rapid economic growth and pledge for low rates.

The broader Topix advanced 1.23 per cent to close at 2,008.51, crossing the 2,000 mark for the first time since May 1991. The Nikkei index jumped 1.01 per cent to 30,216.75, its highest close in three weeks.

"Investors have a lot of reasons to sell stocks at the end of the fiscal year end March, but today their appetite for making bets greatly exceeded the sell-off pressure," said Takatoshi Itoshima, strategist at Pictet Asset Management.

"The Fed gave investors confidence by brushing off uncertainties of the rate outlook by pledging to keep its interest rate at close to zero."

The S&P 500 and Dow Jones Industrial Average closed at record highs on Wednesday after the Fed said the US economy is heading for its strongest growth in nearly 40 years, fuelled by massive federal fiscal stimulus and the roll-out of Covid-19 vaccines.

In Japan, chip-related shares advanced, with Nikkei heavyweights Tokyo Electron jumping 2.72 per cent, Fanuc gaining 1.94 per cent and Advantest rising 3.32 per cent.

The airliners gained, with ANA Holdings and Japan Airlines rising 1.32 per cent and 1.46 per cent, respectively, as the Japanese government's advisory panel on coronavirus countermeasures approved a plan to let the state of emergency expire in the Tokyo area as scheduled on March 21.

Shikoku Electric Power surged 5.26 per cent after a media report said a court ruled that the utility can resume operations of its only nuclear reactor.

Mitsubishi UFJ Financial Group, up 5.15 per cent, and Toyota Motor, which rose 4.12 per cent, were the biggest advancers on the Topix 30.

The underperformers among the Topix 30 were SoftBank Group, down 1.73 per cent, followed by Astellas Pharma, losing 0.50 per cent.

REUTERS