TOKYO, June 2 (Reuters) - Japanese shares advanced on
Wednesday as the hospitality sector gained after accelerating
vaccinations boosted economic reopening hopes, while shares of
carmakers scaled new highs due to stronger global demand.
The Nikkei share average rose 0.46% to 28,946.84,
while the broader Topix gained 0.85% to 1,942.50.
While Japan last week extended its social restriction
measures to later this month, investors are looking beyond, with
signs of pickup in vaccination fuelling their bets on economic
"Daily vaccination counts are now hitting about 500,000, so
we can hope that by mid-July, we could reach a level where new
infections should fall because enough number of people will have
been vaccinated," said Nobuhiko Kuramochi, market strategist at
Railway companies were among the best performers, with West
Japan Railway jumping 5.0% and East Japan Railway
Airliner ANA Holdings gained 2.9%, while rival
Japan Airlines followed close with rise of 2.6%.
The real estate sector was another strong performer, with
Sumitomo Realty & Development adding 4.0% while Mitsui
Fudosan rose 3.9%.
Real estate investments trusts (REITs) were also in demand,
with their index TSE REIT Index rising 1.1% to come
within their 14-month intraday peak hit about a month ago.
Automakers shone, as carmakers globally benefit from demand
recovery and from hopes that the worst of chip shortage may be
Honda Motor rallied 4.2% to hit a three-year high,
while Toyota Motor extended its uptrend to scale a
On the other hand, investors also rotated out of shares that
had benefited from windfalls following the pandemic.
Furniture store operator Nitori Holdings lost 3.3%
to one-year low while medical equipment maker Sysmex
Drugmakers also came under pressure, with Daiichi Sankyo
dropping 1.4% to a 13-month low and Ono Pharmaceutical
down 1.0% at a 14-month low.
(Reporting by Hideyuki Sano)