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Nikkei extends rally to 4th straight day, another 29-year high

TOKYO (Kyodo) -- Tokyo stocks ended higher Friday, with the benchmark Nikkei extending its rally to a fourth straight day and renewing a 29-year high, as buying in real estate and high-tech shares wiped out initial losses on the yen's rise.

    The 225-issue Nikkei Stock Average ended up 107.40 points, or 0.40 percent, from Thursday at 26,644.71, its highest closing since April 18, 1991. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 8.27 points, or 0.47 percent, higher at 1,786.52.

    Other gainers included nonferrous metal, pharmaceutical and electric appliance issues.

    The U.S. dollar slid to the upper 103 yen range amid rising concern over a recent resurgence of coronavirus infections in Japan. Yasutoshi Nishimura, the minister in charge of the country's virus response, suggested at a press conference Thursday that the government could declare another state of emergency if the infection situation worsens.

    At 5 p.m., the dollar fetched 104.07-08 yen compared with 104.25-35 yen in London at 4 p.m. and 104.32-33 yen in Tokyo at 5 p.m. Thursday. U.S. financial markets were closed Thursday for the Thanksgiving holiday.

    The euro was quoted at $1.1927-1928 and 124.13-17 yen against $1.1900-1910 and 124.10-15 yen in London and $1.1926-1927 and 124.41-45 yen in Tokyo late Thursday afternoon.

    The yield on the benchmark 10-year Japanese government bond rose 0.005 percentage point from Thursday's close to 0.025 percent as investors sold the debt after a 2-year bond auction held by the Finance Ministry saw sluggish demand.

    Stock trading was volatile during the day, but the Nikkei managed to reverse course and edged up in the afternoon after it was under pressure from the strong yen, which erodes Japanese companies' overseas profits when repatriated.

    "Mid- and long-term investors bought shares of companies related to technologies including electric vehicles and 5G communications, expecting higher profits in the next year," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.

    He added that the market was also lifted by higher real estate issues following reports that Japanese property developer Mitsui Fudosan Co. will launch a tender offer for ballpark operator Tokyo Dome Corp.

    Yutaka Miura, senior technical analyst at Mizuho Securities Co., meanwhile, said there are expectations that investors will move to reinvest their profits after receiving dividends for the first half of 2020.

    On the First Section, advancing issues outnumbered decliners 1,500 to 608, while 68 ended unchanged.

    Electric parts makers Nidec climbed 525 yen, or 4.2 percent, to 13,175 yen and Murata Manufacturing rose 128 yen, or 1.4 percent, to 9,062 yen.

    Among real estate issues, Mitsui Fudosan gained 42.50 yen, or 1.9 percent, to 2,302.00 yen and Tokyu Fudosan Holdings advanced 19 yen, or 3.7 percent, to 529 yen.

    Automakers were hit by the strong yen, with Toyota Motor shedding 49 yen, or 0.7 percent, to 7,252 yen, while Nissan Motor dropped 10.40 yen, or 2.0 percent, to 517.20 yen.

    Trading volume on the main section rose to 1,529.50 million shares from Thursday's 1,164.00 million shares.

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