Japane Shares Jump nearly 2, Vaccine Lift Recovery Hopes

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TOKYO, May 28 Reuters Japanese shares jumped on Friday, as investors scooped up stocks after selloffs due to MSCIs reshuffle in the previous session, while progress in the countrys vaccination drive lifted risk appetite on prospects of a swift economic recovery.

The Nikkei share average crossed the 29,000 level for the first time since May 11, jumping 1.95 to 29,106.86, as of 0205 GMT. The index is poised for a weekly gain of 2.8.

The broader Topix advanced 1.79 to 1,945,21.

The rise is too much today and the gain is not reflecting the fundamental strength of the Japanese markets, Shuji Hosoi, senior strategist at Daiwa Securities, said.

This is a rebound from yesterdays selloffs that were related to MSCIs regular reshuffle as well as profittaking towards the end of the month.

The Nikkei snapped a fiveday winning run in the previous session, with a daily turnover swelling to the highest in more than three years, as 29 names were dropped from the MSCIs main index.

Rollouts of COVID19 vaccines have contributed to positive sentiment as investors hope a steady vaccination drive can help accelerate economic recovery, market participants said.

The gains were led by cyclical shares, with steel makers and machinery makers gaining the most among the 33 subindexes of the main bourse.

Toyo Seikan Group Holdings, up 7.9, was the largest percentage gainer on the Nikkei, followed by Hino Motors gaining 7.14 and Yaskawa Electric Corp up 6.57.

The largest percentage loser was…

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