Nikkei rallies to 29-year high, Honda leads carmakers on upbeat earnings

  • Reuters
  • Stock Market News
Nikkei rallies to 29-year high, Honda leads carmakers on upbeat earnings
Credit: © Reuters.

By Hideyuki Sano

TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average on Monday reached a high last seen almost three decades ago, after Joe Biden secured a victory in the U.S. Presidential election, with Honda Motors 7267.T leading gains among carmakers after strong quarterly numbers.

Investors, who had held off buying last week due to U.S. political uncertainty, are rushing to buy as they focus on Biden's ability to expand fiscal stimulus and measures to reduce the spread of COVID-19. Nikkei hit an intraday high of 24,678.62 .N225 , breaking above its 2018 peak of 24,448 to reach its highest level since November 1991. The broader Topix .TOPX also gained 0.77% to 1,671.32, a level last seen in late February.

Honda Motor 7267.T jumped as much as 9% after the carmaker revised up its earnings outlook. equipment maker index .ITEQP.T gained 2.8% with Toyota Motor Corp 7203.T , which announced its earnings on Friday, also extending gains by 2.8%.

"Corporate earnings are recovering more than expected. It also means a lot for the Japanese market that car makers are showing a strong recovery," said Takuya Hozumi, global investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.

"In addition, Eastern Asian shares, including Japan, were helped by the relatively contained level of coronavirus infections," he added.

Sushiro Global 3563.T jumped 12% after the sushi restaurant chain operator reported a better-than-expected profit in the July-September quarter, recovering from a slump triggered by the epidemic in the preceding quarter.

Renewable energy-related firms also soared following Biden's victory. Renova 9517.T gained 6.6% while West Holdings 1407.T jumped 10% and Erex 9517.T rose 7.3%.

On the other hand, Japan Airlines 9201.T fell as much as 15.5% to touch its lowest level since its listing in 2012 after the company floated its plans to sell new shares to raise about $1.6 billion. Rival ANA 9202.T also felt the heat and dropped 3.5%.

Eisai 4523.T dived 24% after a panel to U.S. regulator voted that a potential Alzheimer's treatment from the firm and Biogen Inc BIIB.O has not been proven to slow progression of the disease. (Editing by Sherry Jacob-Phillips)

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