Tokyo's Nikkei index hits 29-year high after Biden win

TOKYO, Japan — Tokyo stocks surged over 2% to end at a 29-year high on Monday after Joe Biden was elected the next US president in a close contest that eventually delivered the outcome investors expected.

The benchmark Nikkei 225 index gained 2.12%, or 514.61 points, to end at 24,839.84, while the broader Topix index added 1.41%, or 23.41 points, to 1,681.90. The Nikkei is now sitting at levels not seen since 1991.

“Investor sentiment was greatly improved due to receded US political risks,” Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

The gains came after the US market ended the best week since April, although Friday’s Wall Street session was lukewarm as vote-counting was still ongoing.

In Tokyo trading, internet investor SoftBank Group jumped 5.37% to 7,083 yen. The company said after the market close that first-half net profit soared 346.7%, sealing a strong recovery after a massive annual loss.

Fast Retailing, Uniqlo casual wear operator, added 3.74% to 78,310 yen, while Sony advanced 0.82% to 9,220 yen.

Toyota climbed 2.19% to 7,173 yen, while its rival Honda soared 9.42% to 2,833.5 yen. 

On flip side, Eisai dived 23.64% to 7,819 yen after the firm failed to get approval from a panel of US Food and Drug Administration advisers for an Alzheimer’s treatment the Japanese drugmaker is developing with Biogen.

Japan Airlines plunged 10.96% to 1,641 yen after the carrier announced a public offering to shore up capital. 

The dollar traded at 103.52 yen in Asian trade, against 103.33 yen in New York on Friday.