FX.co ★ Japanese stocks close at 29-year high amid progress in developing COVID-19 vaccine

The Tokyo Stock Exchange has surprised market participants with its unexpectedly high activity. Recently, quotes have been confidently rising. Moreover, most of them reached record highs for the first time in 29 years.

According to analysts, during the last week, Tokyo stock indices skyrocketed. The Nikkei, the main index that measures the performance of 225 large, publicly owned companies in Japan, jumped above the level of 25,100 points. Economists were puzzled by the speed of this advance. Thus, just 15 minutes after the trade began, the Nikkei soared by 336 points to 25,206. TOPIX is also an important index that tracks all domestic companies listed in the First Section of the Tokyo Stock Exchange. It climbed by 30 points to 1,711.98 points.

The jump in the Tokyo and New York stock exchanges was mainly triggered by the news about the trials of an American vaccine against Covid-19. Market participants have estimated the positive effect of such news on the economy. Notably, such a surge in the Tokyo Stock Exchange was last recorded 29 years ago. Then, the economic activity was really overheated amid the asset price bubble that burst a year later. It was a period when real estate and stock market prices were greatly inflated.