TOKYO: Japan’s Nikkei surged to close at a fresh 29-year high on Wednesday, as investors remained hopeful of a swift global economic recovery from the Covid-19 pandemic on vaccine-related developments.

The benchmark Nikkei share average closed 1.78% higher at 25,349.60, marking its highest closing level since June 1991.

The index also extended gains to a seventh consecutive session, its longest rally since October 2019.

The broader Topix gained 1.66% to 1,723.65, its highest level since Feb. 7. All but three of the 33 sector sub-indexes on the Tokyo exchange traded higher.

Cyclical financials sectors outperformed as they benefited from an overnight jump in US Treasury yields, with insurers and banks up 3.06% and 2.72%, respectively.

Meanwhile, airlines ANA Holdings and Japan Airlines , which had soared around 17% each on Tuesday on the vaccine rally, lost steam and were last down 1.13% and 2.11%, respectively. Internet service provider DeNA was among the largest percentage gainers in the index, soaring more than 12% after it posted upbeat half-year earnings. Regional banks gained after the Bank of Japan unveiled on Tuesday a scheme aimed at incentivising regional lenders to consolidate and help revitalise regional economies.

Concordia Financial Group jumped more than 4.7%, followed by Shimane Bank and Chiba Bank rising 5.61% and 3.57%, respectively. Kansai Mirai Financial Group jumped 13.4% after Resona Holdings said it would pay up to 66.15 billion yen ($628.38 million) to take full control of the company. Resona Holdings climbed nearly 4.47%.—Reuters