Tokyo: Shares end higher on recovery hopes

[TOKYO] Tokyo shares jumped Thursday to a six-month high after overnight surges on major markets, triggered by increasing hopes for economic recovery that drove up broad Asian shares.

The benchmark Nikkei 225 index soared 405.65 points or 1.78 per cent to 23,249.61, the best close since Feb 21, shortly after the government began asking organisers of large events to consider delaying or cancelling their projects to prevent coronavirus infections.

The broader Topix index rose 18.62 points or 1.16 per cent to 1,624.15.

The Tokyo market's strength came after global shares racked up healthy gains as investors regained their optimism about an economic recovery.

A string of recent indicators, including solid US jobs data, "show macroeconomic data are gaining momentum toward recovery", Okasan Online Securities said in a note.

"The Tokyo market steadily firmed through the day," the brokerage added.

"Sell-on-rallies moves kept a cap on gains. Still, the strength of other Asian markets helped encourage buying and kept (the Nikkei) at a high level."

Investors are also welcoming news about progress on the development of vaccines for the coronavirus, the brokerage said.

AFP