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TOKYO: Japan's Nikkei share average hit its best level in nearly three decades on Tuesday as pandemic-battered shares of airlines, railway operators and department stores jumped on news of progress in the development of a Covid-19 vaccine.

The Nikkei rose 0.26% to close at 24,905.59 points after hitting its highest level since June 1991 during the session. The broader Topix gained 1.12% to 1,700.80. Turnover jumped to 4.075 trillion yen, the biggest in five months.

Airliner ANA Holdings jumped 18.1%, while the country's three big railway operators - East Japan Railway, West Japan Railway and Central Japan Railway - all vaulted about 15%.

Department store chain J.Front Retailing gained 15.6%, while rival Isetan Mitsukoshi soared 13.0%. Tokyo Disney Resort operator OLC rose 6%, hitting a record high.

Topix Value index rose 3.2% as financials benefited from a surge in US bond yields while other "old economy" shares, such as steelmakers, gained on hopes of a broader economic recovery.

Internet service firms and game companies, with their valuation stretched after concentration of investors' funds, fell out of favour.

Bandai Namco Holding lost 8.1%, while Nintendo shed 4.5%. Internet firm Z Holdings tumbled 7.6% while medical service platform operator M3, one of the market's best performers this year, dropped 7.3%.

Mothers start-up shares, another high-flyer this year, fell 6.4%, its biggest fall in eight months.-Reuters

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