TOKYO, June 2 (Reuters) – Japanese stocks rose on Wednesday as the hospitality sector advanced after accelerating vaccinations boosted hopes of an economic reopening, while shares of automakers hit new highs in due to stronger global demand.
The Nikkei stock average rose 0.46% to 28,946.84, while the broad Topix gained 0.85% to 1,942.50.
As Japan extended its social restraint measures until the end of the month last week, investors are looking beyond, with signs of a resumption of vaccination fueling their bets on economic reopening.
“The number of daily vaccinations is now around 500,000, so we can hope that by mid-July we can reach a level where new infections are expected to drop because enough people will have been vaccinated,” Nobuhiko said. Kuramochi, Market Strategist at Mizuho Securities. .
Railways were among the best performers, with West Japan Railway jumping 5.0% and East Japan Railway jumping 3.9%.
Airliner ANA Holdings gained 2.9%, while rival Japan Airlines followed closely with a rise of 2.6%.
The real estate sector was also a strong performer, with Sumitomo Realty & Development adding 4.0% while Mitsui Fudosan rose 3.9%.
Real estate investment trusts (REITs) were also in demand, with their index – TSE REIT Index – up 1.1% to hit their 14-month intraday peak reached about a month ago.
Automakers have shone as automakers around the world benefit from rebounding demand and the hope that the worst of the chip shortage is over soon.
Honda Motor rose 4.2% to a three-year high, while Toyota Motor extended its uptrend to an all-time high.
On the other hand, investors have also turned away from stocks that had benefited from deals following the pandemic.
Furniture store operator Nitori Holdings lost 3.3% to its lowest level in a year while medical equipment maker Sysmex lost 3.0%.
Drugmakers were also under pressure, with Daiichi Sankyo falling 1.4% to a 13-month low and Ono Pharmaceuticals 1.0% to a 14-month low. (Report by Hideyuki Sano)