Japan shares flirt with 29-year high on vaccine, stimulus hopes

TOKYO, Dec 1 (Reuters) - Japanese shares rose toward a
29-year high on Tuesday, tracking gains in U.S. stock futures on
the back of growing optimism that major drugmakers will roll out
coronavirus vaccines some time before the end of the year.
The Nikkei 225 index .N225 climbed 1.42% to 26,810.05 by
0212 GMT, moving closer toward a 29-year high of 26,830.10
reached on Monday. The broader Topix .TOPX rose 0.86% to
1,769.91.
Makers of precision equipment, electronic parts, and
chemicals led the advance in a sign that investors are betting
on cyclical companies with close links to global demand.
Japanese stocks got off to a bright start after Moderna Inc
MRNA.O said it had applied for U.S. emergency authorization
for its COVID-19 vaccine. Moderna's candidate is the second
vaccine likely to win U.S. approval for a potential rollout this
year. In addition, Japan's government has vowed to compile a
stimulus package to help the economy mitigate short-term
economic impacts from a recent rise in coronavirus infections.
"There may be some slight adjustments, but Japanese stocks
won't fall very far," said Kiyoshi Ishigane, chief fund manager
at Mitsubishi UFJ Kokusai Asset Management Co.
"Approval of a vaccine is a big boost. Some traders are also
focused on an increase in Japanese fiscal spending."
U.S. stock futures EScv1 rose 0.83% in early Asian trade,
which also bolstered Japanese shares.
The stocks that gained the most among the top 30 core Topix
names were Shin-Etsu Chemical Co Ltd 4063.T , up 4.46%,
followed by Fanuc Corp 6954.T , which rose 3.53%.
The underperformers among the Topix 30 were Recruit Holdings
Co Ltd 6098.T , down 2.80%, followed by Nintendo Co Ltd
7974.T , losing 1.94%.
There were 170 advancers on the Nikkei index against 49
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.57 billion, compared to the average of
1.27 billion in the past 30 days.