TOKYO, Nov 10 (Reuters) - Japan's Nikkei share average
rallied to a 29-year high on Tuesday as battered airlines,
railway and department store operator shares jumped on news of
progress in the development a COVID-19 vaccine.
Investors switched to beaten-down value shares while dumping
those which benefited from the stay-at-home trend during the
pandemic, such as internet service firms and game companies.
The Nikkei rose 1.17% to 25,131.71, hitting its best
level since June 1991 and rising for a sixth straight session.
The broader Topix gained 1.62% to 1,709.06.
Airliner ANA Holdings jumped 16.9%, while the
country's three big railway operators East Japan Railway
, West Japan Railway and Central Japan Railway
all vaulted more than 10%.
Department store chain J.Front Retailing gained
10.7%, while rival Isetan Mitsukoshi soared 8.9%.
Pfizer and German partner BioNTech SE said
its experimental COVID-19 vaccine was more than 90% effective
based on initial trial results.
Topix value rose 2.8% as insurers and
banks benefited from surge in U.S. bond yields while
other "old economy" shares, such as steelmakers, gained
on hopes of a broader recovery in the economy.
"Perhaps markets were preoccupied with U.S. elections a bit
too much. Some investors who had increased cash holdings due to
uncertainties over the U.S. elections are now coming back as
they see a real chance of a recovery in corporate earnings,"
said Takatoshi Itoshima, strategist at Pictet Asset Management.
Internet service firms and game companies, with their
valuation stretched after concentration of investors' funds,
fell out of favour.
Bandai Namco Holding dropped 5.7%, while Nintendo
lost 5%. Internet firm Z Holdings shed 3.9%
while medical service platform operator M3, one of the
market's best performers this year, dropped 3.5%.
Mothers start-up shares, another high-flyer this
year, fell 4.1%.
(Editing by Uttaresh.V)