By Donican Lam,
The Nikkei stock index closed above 30,000 on Wednesday for the first time since September 2021, boosted by buying of companies with favorable shareholder returns and hopes for a recovery in inbound tourism.
The 225-issue Nikkei Stock Average ended up 250.60 points, or 0.84 percent, from Tuesday at 30,093.59, its highest level since Sept. 28, 2021. The broader Topix index finished up 6.43 points, or 0.30 percent, at 2,133.61, its highest level since August 1990.
Gainers were led by air transportation, pulp and paper, and insurance issues.
The U.S. dollar climbed to the upper 136 yen range in Tokyo after stronger-than-anticipated U.S. housing data released Tuesday fueled expectations that the Federal Reserve will prolong its monetary tightening measures, dealers said.
At 5 p.m., the dollar fetched 136.98-99 yen compared with 136.34-44 yen in New York and 135.79-81 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0831-0833 and 148.37-41 yen against $1.0856-0866 and 148.12-22 yen in New York and $1.0888-0889 and 147.85-89 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond fell 0.030 percentage point from Tuesday's close to 0.360 percent as investors bought the debt after a 20-year bond auction by the Finance Ministry met solid demand.
The Nikkei advanced for the fifth consecutive trading day and the Topix index ended at a 33-year high for the second day in a row, as the weakening yen, alongside recent announcements of share buybacks and dividend increases, attracted buying by foreign and domestic investors, analysts said.
Stocks' upside was also supported by expectations that under its new Governor Kazuo Ueda, the Bank of Japan will maintain its current policy of keeping interest rates at very low levels despite high inflation, analysts said.
"As long as the BOJ does not change its ultraloose monetary policy, I believe that the market will continue to trend upwards," said Tomoichiro Kubota, senior market analyst at Matsui Securities Co.
Noting that Japanese stocks gained ground despite overnight falls on Wall Street, Kubota said that the Tokyo market may continue to move separately from the U.S. market, which is affected by ongoing debt-ceiling negotiations.
Tourism issues were sought ahead of inbound travel-related data, to be released later Wednesday, amid hopes for increased spending by foreign tourists following the removal of COVID-19 restrictions, analysts said.
ANA Holdings, the parent of All Nippon Airways, gained 60 yen, or 1.9 percent, to 3,155 yen, while Japan Airlines advanced 59 yen, or 2.2 percent, to 2,733 yen.
Among export-related issues, Nikon rose 16 yen, or 1.1 percent, to 1,497 yen, while electronic components maker TDK was up 85 yen, or 1.7 percent, at 4,990 yen.
