TOKYO: Japanese shares ended higher on Thursday, with the Nikkei touching a 30-year peak, powered by financials as US bond yields climbed on expectations of larger stimulus following a Democrat sweep in two Senate runoffs in Georgia.

The Nikkei average closed 1.60% higher at 27,490.13, hitting its highest level since August 1990 at one point during the session and snapping a four-day losing streak.

The broader Topix added 1.68% to 1,826.30, climbing above a peak hit late last year to reach its highest level since October 2018.

Insurer Dai-ichi Life Holdings rose 7.4%. Among banks, SMFG gained 5.5%, while Mizuho added 3.3% and Mitsubishi UFJ rose 3.5%.

Other cyclical, value shares also gained on hopes of a stimulus package from the incoming Biden US administration.

Steelmakers gained 5.2%, with Nippon Steel rising 7.8%. Ship builder Hitachi Zosen surged 13.7%.

SoftBank Group dropped 1.6% on news that the Trump administration is considering adding Alibaba Group Holding Ltd to its trade blacklist of Chinese companies.

Softbank Group is the largest shareholder of the Chinese e-commerce giant.