Nikkei Index Closes at Highest in 31 Years... Expectations for Presidential Election and Vaccine Rollout (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Nikkei Stock Average in Japan closed at its highest level in 31 years on the 14th.

According to the Nihon Keizai Shimbun and others, the Nikkei 225 index closed at 30,670.10, up 0.73% (222.73 points) from the previous day. This marks the highest level in about 31 years since August 1990. Nihon Keizai explained, "Expectations for policies ahead of the Liberal Democratic Party presidential election intensified, and improved investment sentiment due to COVID-19 vaccine development drove the stock prices up."

The Nikkei 225 index hit its yearly low on the 20th of last month, but after Japanese Prime Minister Yoshihide Suga announced he would not run in the presidential election, stock prices surged, rising by 3,500 points in just three weeks. The expectation that the new government would implement active economic revitalization policies to recover from the economic damage caused by COVID-19 boosted the stock prices.

The somewhat eased COVID-19 situation in Japan is also seen as influencing the stock prices. The population that has received two vaccine doses exceeded 50%, and the number of new confirmed cases peaked last month and has since declined, leading to expectations that quarantine measures may be somewhat relaxed, according to Nihon Keizai.

Meanwhile, the TOPIX index closed up 1.01% (21.16 points) at 2,118.87.

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