Nikkei Index Closes at Highest Level in Six Months on "Vaccine Development Optimism"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Nikkei 225 index in Japan recorded its highest level in half a year on the 13th since before the outbreak of the novel coronavirus disease (COVID-19) in February. Recovering the 23,000 level, it has virtually regained the losses caused by the COVID-19 impact.

According to Bloomberg News and others, the Nikkei 225 index on the Tokyo Stock Exchange closed at 23,249.61, up 1.78% (405.65 points) from the previous trading day. This is the highest closing level since February 21 (23,386.7). Recovering the 23,000 level is the first time in two months.

The Nikkei 225 index has shown an upward trend for three consecutive days. Foreign media in Japan reported that as the New York Stock Exchange showed an upward trend, the Tokyo Stock Exchange in Japan also followed suit. They noted that the announcement of early-stage research results on COVID-19 vaccines by U.S. pharmaceutical companies such as Moderna is seen by the market as progress in vaccine development, raising expectations that the COVID-19 situation will improve.

The Nihon Keizai Shimbun reported, "In terms of stocks, shares related to electrical equipment and machinery rose prominently, and semiconductor-related stocks also increased significantly. The repurchase by foreign investors who repeatedly engage in short-term trading was notable." However, it added, "There is a widespread view that it will take time for corporate earnings, worsened by COVID-19, to recover."