TOKYO, Feb 8 Reuters Japanese shares rose sharply on Monday, with both Nikkei and Topix hitting 30year highs, as strong corporate earnings lifted investor confidence for an economic recovery from pandemic lows.
The Nikkei share average jumped 2.09 to 29,380.12 by 0210 GMT, the highest level since August 1990, while the broader Topix rose 1.75 to 1,923.96, the highest since June 1991.
With the vaccine rollouts and the fall in the number of daily COVID19 infections, expectations for normalization of the economy is rising, said Soichiro Matsumoto, chief investment officer Japan at Credit Suisse Private Banking.
Betterthanexpected corporate performance in this environment is also lifting sentiment. Many U.S. firms have reported upbeat results and Japanese companies, particularly those sensitive to overseas demand, are following suit.
The SP 500 and Nasdaq indexes on Friday scored their biggest weekly percentage gains since early November, powered by earnings optimism and progress on vaccine rollouts, while Democrats cleared the path for the approval of President Joe Bidens 1.9 trillion COVID19 relief package.
At home, steel makers led Nikkeis gains, with Kobe Steel surging 13.94 on raising its fullyear outlook and Nippon Steel jumping 9.1 after trimming its annual net loss forecast. JFE Holdings rose 6.57.
Toyota Motor gained 1.67 ahead of its earnings report on Tuesday. Its autoparts affiliates Denso and Aisin Seiki, up 1.56 and 2.89 each, had raised their outlook…