Nikkei hits 29-year high as vaccine optimism boosts risk appetite

TOKYO, Nov 17 (Reuters) - Japan's Nikkei share average
closed at a 29-year high on Tuesday as investors cheered news of
another potential coronavirus vaccine that re-ignited hopes of a
swift global recovery.
The Nikkei share average .N225 rose 0.42% to 26,014.62,
its highest close since May 1991. The broader Topix .TOPX
added 0.15% to 1,734.39, after having slipped into negative
territory in morning trade.
Investor sentiment was given a boost when Moderna Inc
MRNA.O said its experimental COVID-19 vaccine was 94.5%
effective in preventing infection based on interim late-state
data. Still, downturn risks remain as investors turned cautious
after the index rallied sharply by more than 13% this month, and
as new coronavirus cases have been surging both at home and
abroad, analysts said.
The benchmark index had closed at a 29-year high on Monday
as well after the economy posted its first expansion in four
quarters. "The market has been overheated by a high-paced rise, and it
would be no wonder if stocks go into correction at any time in
the short term," said Maki Sawada, equity market strategist at
Nomura Securities.
The S&P 500 and Dow Jones industrial average notched record
closing highs on Monday after Moderna Inc MRNA.O became the
second U.S. drugmaker to report trial results that far exceed
expectations.
Around two-thirds of the 33 sector sub-indexes on the Tokyo
exchange traded higher.
The airline sector led gains, climbing 3.96%, with ANA
Holdings 9202.T and Japan Airlines 9201.T adding 4.16% and
3.72%, respectively.
Other cyclical sectors followed, with miners .IMING.T ,
insurers .IINSU.T and iron and steel .ISTEL.T rising between
2.1% and 3.4%.
Semiconductor Tokyo Electron 8035.T rose 1.32% to a record
high, taking positive cues from its U.S. peers.
Nikkei's heavyweight Fanuc Corp 6954.T rose nearly 1.5%,
helped by upbeat industrial output data from China and the
formation of a regional trade bloc comprising 15 Asia-Pacific
economies. The Mothers Index .MTHR of start-up firm shares bucked the
overall firmness and dropped 3.63%.