TOKYO, Jan 21 (Reuters) - Japanese shares hit their highest
close in 30 years, taking cues from solid overnight performances
on Wall Street, on investor optimism over upbeat corporate
earnings and that new U.S. administration's massive stimulus
package will bolster growth.
Nikkei share average .N225 gained 0.82% to 28,756.86, the
highest close since August 1990, while the broader Topix .TOPX
inched up 0.6% to 1,860.64.
Republicans in the U.S. Congress have indicated they are
willing to work with President Joe Biden on his administration's
top priority, a $1.9 trillion U.S. fiscal stimulus plan, but
some are opposed to the plan's price tag. Asian stocks touched all-time highs as investors hoped for
more economic stimulus from the Biden administration to offset
damage wreaked by the COVID-19 pandemic.
"The market rose on expectations for more stimulus packages
in the United States," said Yoshihiro Takeshige, general manager
at investment management department of Asahi Life Asset
Management.
"Another positive factor is that Japanese manufacturers
could revise up their earnings forecast, particularly those
benefiting from a recovery in Chinese economy."
Many companies are lined up for reporting their quarterly
numbers, starting from Monday. Nidec Corp 6594.T , which has
risen more than 10% this month, will be one of the first
companies to announce the results.
Dentsu Group 4324.T. jumped 5.26%, becoming the largest
gainer in the index, after a report that the advertising giant
is considering the sale of its Tokyo headquarters, which local
media said could fetch around 300 billion yen ($2.9 billion)
Panasonic 6752.T jumped 4.97% after the company said it
has developed storage boxes for the coronavirus vaccine.
SoftBank Group rose 2.9% to a record high after Alibaba
Group's American Depositary Receipts rose following a video
reappearance of its founder Jack Ma. In the Nikkei index, 132 companies advanced, while 84 stocks
fell.
The volume of shares traded on the Topix was 1.14 billion,
compared to the average of 1.12 billion in the past 30 days.
($1 = 103.6100 yen)
(Editing by Sherry Jacob-Phillips)