Nikkei rises 2.05%... Hits highest level in 29 years

Q3 Japanese Economy Grows 21.4% (Annualized)
Market Reflects Optimism on Vaccines and RCEP

[Asia Economy Reporter Naju-seok] The Japanese stock market closed with a gain of over 2%, influenced by expectations for the COVID-19 vaccine and the signing of the Regional Comprehensive Economic Partnership (RCEP). This marked the highest closing price in 29 years.

On the 16th, at the Tokyo Stock Exchange, the Nikkei 225 index closed at 25,906.93, up 2.05% (521.06 points) from the previous trading day. The TOPIX index ended the session at 1,731.81, rising 1.68% (28.59 points).

Japanese media viewed the 21.4% (annualized) growth in the Japanese economy in the third quarter (July to September) and the sharp rebound as positive factors for the market. After recording the worst growth rate since World War II in the second quarter, the Japanese economy showed a rebound in the third quarter, which contributed positively. The third quarter GDP growth rate was about 5% compared to the previous quarter.

Additionally, expectations for increased exports due to COVID-19 vaccine development and the RCEP agreement also contributed to the stock price rise.

The Japanese Nikkei newspaper explained, "On a closing basis, the Nikkei recorded its highest level in 29 years since June 1991." The daily gain was the largest since June 15.

However, there are concerns in Japan about the recent spread of COVID-19, with confirmed cases exceeding 1,000. Nonetheless, the market sentiment is evaluated as calm compared to earlier this year, as economic activities continue in parallel.

This content was produced with the assistance of AI translation services.