TOKYO, May 28 (Reuters) – Japanese shares ended higher on Friday, as investors swooped on stocks related to the sell-off prompted by MSCI\u2019s reshuffle in the previous session, while a steady vaccine rollout whetted risk appetite on hopes of a swift economic recovery.<\/p>\n
The Nikkei share average rose 2.10% to 29,149.41, closing above the 29,000 level for the first time since May 10, while the broader Topix gained 1.91% to 1,947.44.<\/p>\n
The Nikkei posted a weekly gain of 2.94%, while the Topix closed the week 2.24% higher.<\/p>\n
\u201cThe rise is too much today and the gains are not reflecting the fundamental strength of the Japanese markets,\u201d Shuji Hosoi, senior strategist at Daiwa Securities, said.<\/p>\n
\u201cThis is a rebound from yesterday\u2019s sell-offs that were related to MSCI\u2019s regular reshuffle as well as profit-taking towards the end of the month.\u201d<\/p>\n
The Nikkei snapped a five-day winning run in the previous session, with a daily turnover swelling to the highest in more than three years, as 29 names were dropped from the MSCI\u2019s main index.<\/p>\n
Rollouts of COVID-19 vaccines have contributed to positive sentiment as investors hope a steady vaccination drive can help accelerate economic recovery, market participants said.<\/p>\n
The gains were led by cyclical shares, with nonferrous metals makers, steel makers and machinery makers gaining the most among the 33 sub-indexes of the main bourse.<\/p>\n
Railway-related stocks also advanced, with Central Japan Railway, the operator of the bullet trains connecting Tokyo and Osaka, gaining 2.52% and East Japan Railway rising 2.02%.<\/p>\n
The stocks that gained the most among the top 30 core Topix names were SoftBank Group up 3.66 %, followed by Shin-Etsu Chemical, rising 3.65%.<\/p>\n
Kao Corp, which lost 1.39%, was the worst performer among the Topix 30, followed by Takeda Pharmaceutical falling 1.21%.<\/p>\n