Tokyo's benchmark index rose Thursday to post its longest string of gains in nearly 30 years, as corporate earnings get into full swing and voters in the world's number-three economy head to the polls this weekend. The Nikkei 225 gained 0.40 percent, or 85.47 points, to close at 21,448.52, its 13th winning session and the longest positive run since early 1988, during the country's bubble economy years.
The broader Topix index tacked on 0.31 percent, or 5.40 points, to finish at 1,730.04. Investors have been generally upbeat on the state of the global economy with fresh record closes on Wall Street also supplying a positive lead. Markets have been encouraged by polls showing Japanese Prime Minister Shinzo Abe is heading for a clear victory in Sunday's election, meaning a continuation of his "Abenomics" growth strategy.
"The call for a snap election was a catalyst for rallies in the Japanese stocks," said Hiroaki Kiwata, strategist at Toyo Securities. "Usually share prices decline after the election, but this time corporate earnings reports are coming soon after, so the market focus will smoothly shift to company results," Kiwata told AFP.
The Nikkei was below 10,000 when Abe came to power in late 2012. But it still remains far below a record close of almost 39,000 in the last days of 1989 before a stock and property market bubble collapsed. The index then began a long descent as the once red-hot Japanese economy fell into years of malaise. "I really think people have under-estimated things," said Andrew Clarke, director of trading at Mirabaud Asia in Hong Kong.
"It's been very fashionable over the years to dismiss Japan and the equity market, and for the most part you would have been right, but this time I am not so sure," he told Bloomberg News. On Thursday, Nintendo shares jumped 1.42 percent to 43,530 yen and Nissan was up 0.82 percent at 1,096 yen, boosted by a cheaper yen. Banks were also higher, with Mitsubishi UFJ Financial Group rising 1.08 percent to 733.8 yen and rival Sumitomo Mitsui gaining 0.61 percent to end at 4,417 yen.
Kobe Steel rose 6.65 percent to 882 yen despite news late Wednesday that European Union aviation authorities had issued a recommendation not to use parts made by the Japanese steelmaker, which has been hammered by a quality control scandal. Panasonic was up 1.69 percent to 1,645.5 yen following a report that it plans to slash costs at its LCD TV division. The dollar edged up to 113.01 yen from 112.93 yen in New York late Wednesday.
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