Nikkei Reaches Pre-Crisis Levels On COVID-19 Treatment Hopes

Nikkei Reaches Pre-Crisis Levels On COVID-19 Treatment Hopes

Nikkei Reaches Pre-Crisis Levels On COVID-19 Treatment Hopes

TOKYO (Reuters) – The Nikkei hit pre-crisis levels on Tuesday amid hopes for an effective cure for the coronavirus, but then lost some of its advantage due to profit-taking.

The Nikkei rose 1.35% to 23,296.77, while the broader Topix added 1.13% to 1,625.23.

During the session, the Nikkei climbed to 23,431.04 points, the highest since February 21. The benchmark has gained 7.31% since the beginning of the month.

The rally was driven by “positive headlines about the coronavirus,” said Hideyuki Ishiguro, senior strategist at Daiwa Securities.

“If the economic recovery continues, for example with the development of coronavirus vaccines, the Nikkei could rise to around 24,000 thanks to short-term share buybacks,” he added.

The rise was led by shares of ANA Holdings Inc, Alps Alpine Co Ltd and Konica Minolta Inc, which gained 7.18%, 6.77% and 5.88% respectively.

(Aimee Yamamitzu; Translated by Olga Beskrovnova; Editor Marina Bobrova)

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