TOKYO, Nov 27 (Reuters) - Japan's Nikkei stock average ended at its highest since April 1991 on Friday as it rallied for the fourth session in a row, buoyed by hopes of economic recovery and strong corporate earnings, after progress in COVID-19 vaccine development.
Nikkei .N225 rose 0.41% to close at 26,644.71. The index has gained 15.96% this month, and is on track for its best performance since January 1994. The broader Topix .TOPX rose 0.47% to hit a 25-month high at 1,786.52.
On a weekly basis, the indexes rose 4.38% and 3.42%, respectively.
The rally was driven by progress in vaccine-related developments, with many investors expecting their delivery next year. Easing U.S. political uncertainty after President-elect Joe Biden's transition to the White House and signs of pick-up in the Chinese economy also lifted sentiment.
"Investors are growing confident about profit recovery in the next financial year," said Takuya Hozumi, global investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.
"When you think profits will rise 40-50% next year, the current valuation do not look expensive."
Electronic parts manufacturers are benefiting from hopes for increased demand related to electric vehicles, 5G communications and other new technologies.
Ballpark operator Tokyo Dome Corp 9681.T jumped 16.7%, hitting daily limit, after the company said it will discuss a take-over bid by property developer Mitsui Fudosan 8801.T . Mitsui Fudosan gained 1.9%. surged to 3.407 trillion yen ($32.77 billion) on trade due to index rebalancing.
Data from Japan Exchange Group showed foreign investors bought about 600 billion yen of Japanese shares, including both cash equity and futures, in their third consecutive week of net buying. ($1 = 103.9700 yen)
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