TOKYO, Sept 6 (Reuters) - Japan's Topix index hit its
highest level in more than three decades on Monday, while the
Nikkei also jumped, as investors continued to buy beaten down
stocks on hopes of an economic recovery and corporate earnings
The Nikkei share average climbed 1.51% to 29,566.67
by 0202 GMT, while the broader Topix jumped 1.08% to
2,037.20, its highest since August 1990.
Japan's market built on its Friday's upbeat momentum after
Prime Minister Yoshihide Suga offered to resign, raising hopes
that the ruling coalition could win an upcoming election and
avoid political turmoil.
"Investors are now in the process of adjusting their
positions of Japanese stocks which were underweighed because of
the country's low vaccination rate and resurgence of the
COVID-19 infections," said Soichiro Matsumoto, chief investment
officer Japan at Credit Suisse Private Banking.
"But, the vaccination rate will soon match with that of U.S.
and Europe and the higher ratio would drive an economic
reopening. Towards the end of the year, we can expect more
companies to raise their forecast."
Most of the 33 sector sub-indexes on the Tokyo exchange
traded higher, with shippers surging 8.77%, while
financial sectors also gained 2.36% and
Chip-related shares tracked the Nasdaq, which hit its peak
on Friday. Tokyo Electron jumped 2.02% and Advantest
Phone companies, which were under pressure to cut rates
under the Suga administration, also rose, with KDDI
jumping 4.66% and Nippon Telegraph and Telephone
Kawasaki Kisen Kaisha was the top gainer on the
Nikkei, with a 9.23% jump, followed by Nippon Yusen
gaining 9.06% and Alps Alpine, rising 6.27%.
Kansai Electric Power, which fell 3.31%, was the
worst performer on the index, followed by Rakuten Group
, losing 1.88%, and Chubu Electric Power, which
was down 1.68%.
(Reporting by Junko Fujita; editing by Uttaresh.V)