Tokyo stocks closed up Wednesday, extending their winning streak to seven days and lifting the benchmark Nikkei to an over 29-year high, on growing expectations of an early global economic recovery following progress in the development of a coronavirus vaccine.
The 225-issue Nikkei Stock Average ended up 444.01 points, or 1.78 percent, from Tuesday at 25,349.60, its highest close since June 4, 1991. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 28.27 points, or 1.66 percent, higher at 1,729.07.
Gainers were led by real estate, mining and insurance issues.
The U.S. dollar was well-supported at around the 105 yen line for most of the day while edging up to the mid-105 yen late afternoon, as the news earlier this week about the successful trial of U.S. pharmaceutical maker Pfizer Inc.'s potential COVID-19 vaccine continued to improve investor sentiment.
At 5 p.m., the dollar fetched 105.39-41 yen compared with 105.19-29 yen in New York and 105.04-05 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1807-1809 and 124.44-48 yen against $1.1807-1817 and 124.31-41 yen in New York and $1.1816-1818 and 124.12-16 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond rose 0.005 percentage point from Tuesday's close to 0.035 percent as investors sold the safe-haven debt and bought Japanese stocks. Bond yields move inversely to prices.
Stocks firmed throughout the day with investors improving their risk appetite following rallies in global stock markets.
The Nikkei hit a record high since the collapse of Japan's asset-inflated bubble economy for the fourth consecutive trading day. The benchmark rose more than 10 percent during the seven-day advance.
"Investors shrugged off U.S. political uncertainty (following the presidential election) and were encouraged by developments related to vaccines," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
"The market is expected to keep a solid tone" until such time as Joe Biden may take office amid expectations for his economic stimulus measures, Fujito added.
Yutaka Miura, senior technical analyst at Mizuho Securities Co., warned of downside risks and possible volatility in the market ahead.
He cited signs of a resurgence of coronavirus infections in Japan and abroad as winter comes. He also said there is caution about Pfizer's vaccine, underscoring reports it has to be stored at temperatures of minus 70 degrees Celsius or lower.
On the First Section, advancing issues outnumbered decliners 1,614 to 493, while 69 ended unchanged.
Sectors battered by the pandemic such as tourism and real estate drew buying.
Travel agency H.I.S climbed 54 yen, or 3.3 percent, to 1,684 yen, while developer Mitsui Fudosan jumped 103.50 yen, or 5.0 percent, to 2,167.50 yen.
Optimism about a global economic recovery helped lift energy issues. Oil explorer Inpex rose 21 yen, or 3.9 percent, to 563 yen, with Japan Petroleum Exploration moving up 73 yen, or 4.1 percent, to 1,843 yen.
Regional banks were higher after the Bank of Japan said Tuesday it will promote realignment in the pandemic-hit sector, offering additional interest on deposits held by the lenders at the central bank if they make efforts to that end.
Tsukuba Bank gained 8 yen, or 4.3 percent, to 196 yen, with Fukushima Bank up 5 yen, or 2.1 percent, to 238 yen.
Trading volume on the main section fell to 1,683.20 million shares from Tuesday's 2,065.35 million shares.
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