Tokyo surges to 30-year high as shares start week with rally

Tokyo surges to 30-year high as shares start week with rally

SeattlePI.com

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BANGKOK (AP) — Asian shares started the week off with a rally, as Japan’s Nikkei 225 index briefly topped 30,000 for the first time since August 1990.

As of midday the Nikkei had fallen back below that level but was still up 1.3%, at 29,914.02. Shares also rose in India, South Korea and Australia. Markets in Shanghai and Hong Kong were closed for the Lunar New Year.

The strong buying in Tokyo was driven by news that the Japanese economy grew at a nearly 13% annual pace in the last quarter, and by strong corporate earnings reports. It was the second straight quarter of growth after a downturn drastically worsened by the impact of the pandemic.

The recovery should put the economy on track to recover to pre-pandemic levels by next year, helped by a recovery in demand for exports in the U.S. and other major trading partners, Marcel Thieliant of Capital Economies said in a report.

Japan recently re-imposed a state of emergency in Tokyo and several other prefectures to battle a resurgence of outbreaks. But sustained corporate investment and government spending will help offset the impact on travel, restaurants and other sectors most affected, he said.

“And while most economists expect a renewed contraction this quarter due to the second state of emergency, we think that output will be broadly flat in Q1 and rise more strongly this year than almost anyone anticipates," he said.

Other Asian markets also saw strong gains. The Kospi in Seoul rose 1.5% to 3,146.29 and India's Sensex climbed 0.7% to 51,907.75. In Australia, the S&P/ASX 200 rose 0.9% to 6,869.20. U.S. futures also were higher.

On Friday, technology companies led a late-afternoon rally on Wall Street that capped a week of wobbly trading. with the major stock indexes hitting all-time highs.

The S&P...

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