Japanese shares rose significantly on Friday morning following the advancements in the country’s vaccination rollout which is paving the way to a smooth economic recovery. As a result, investors moved to scoop up stocks that had previously been sold off due to the wavering economic uncertainty in the previous session.
With the Nikkei share average crossing the 29,000 threshold for the first time since May 11th, the index is well positioned to attain a noteworthy weekly gain of 2.8%.
Shuji Hosoi, senior strategist at Daiwa Securities, remains skeptical in the face of this economic rebound, however, as he expressed his belief that the gain is not a true reflection of the fundamental strength of the Japanese markets. “This is a rebound from yesterday’s sell-offs that were related to MSCI’s regular reshuffle as well as profit-taking towards the end of the month,” Hosoi remarked.
Toyo Seikan Group Holdings gained 7.9% this morning, making it the biggest riser of the day. Hino Motors and Yaskawa Electric Corp followed closely, up 7.14% and 6.57% respectively. Overall, there were 209 advancers on the Nikkei, with just 14 decliners for the day.
