Tokyo shares rise to near 3-month high as Japan reopens economy

SYDNEY, May 26 (Reuters) - Japanese stocks climbed on
Tuesday to their highest in nearly three months as investors
cheered Prime Minister Shinzo Abe's decision to lift the state
of emergency and end coronavirus-induced restrictions
nationwide.
The benchmark Nikkei average .N225 advanced 2.6% to
21,271.17, its highest close since March 5, with air and land
transport companies leading the rally.
Abe said late Monday that the state of emergency would be
lifted for all of Japan, including Tokyo and its surrounding
areas, and that the country managed to get the outbreak under
control in under two months. Getting greater Tokyo, which accounts for about one-third of
Japan's gross domestic product, back on its feet is vital to the
country's overall economic recovery.
Analysts suspect some foreign investors bought back stock
futures for loss-cutting as the Nikkei rose above 21,000, their
estimated cost of selling.
The broader Topix .TOPX gained 2.2% to 1,534.73, its
highest close since Feb. 28, with all 33 sector sub-indexes on
the Tokyo exchange finishing higher.
Air transport .IAIRL.T was the best performing sector on
the main bourse for the second day in a row, with Japan Airlines
Co Ltd 9201.T and ANA Holdings Inc 9202.T soaring 8.2% and
5.7%, respectively.
West Japan Railway Co 9021.T jumped 8.3% and Central Japan
Railway Co 9022.T advanced 5.2%, also supported by hopes of
demand rebound following the reopening.
Isetan Mitsukoshi Holdings Ltd 3099.T climbed 5.1% after
the department store operator said it would reopen its main
stores in the Tokyo area, including its Isetan flagship in
Shinjuku. AnGes Inc 4563.T surged 10.5% after the Nikkei business
daily reported the bio-pharma venture was set to begin a
clinical trial of a COVID-19 vaccine in July, raising hopes that
the medication could secure government approval by the end of
this year.