Japan’s Market Soars to Record : Gain Attributed to Optimism Over New Imperial Era

TOKYO — Japanese stock prices shot up on heavy buying again today, pushing the main index to a record close for the second straight day and lifting the Nikkei index over the 31,000 mark for the first time.

Brokers said the buying was fueled by optimism over the start of a new imperial era and expectations of further rises.

“The passing of the old regime has been playing second fiddle to the dawning of the new regime,” said Simon Smithson, an analyst at Kleinwort Benson International Ltd.

The Nikkei index closed up 328.12 points, or 1.07%, at a record 31,006.51. It broke through 31,000 for the first time just before the close, to 31,004.47.

The Nikkei soared 468.85 points on Monday to close at the previous high of 30,678.38. Gains in the two days total 796.97 points, or 2.64%.

Emperor Hirohito died on Saturday after a long illness, and the new imperial era began the next day. Uncertainty over events after his death had dampened market optimism, brokers said. The market was closed on Saturday for a period of mourning which continued Sunday.

Volume was a heavy 1.5 billion shares, its highest level since Dec. 31, against 1.1 billion on Monday. Winners led losers by a 2-1 margin.

“It’s a new year, the situation is quite good and the market has not been going up much,” said Yusuke Fujiwara, head of equities trading at Baring Securities Ltd. “Everything is going up and everyone is bullish.”

Topping the list of gainers were securities house, bank, non-life insurance, electrical, pharmaceutical, gas, railway/bus, airline, machinery and retail shares. The only sectors to lose were pulp/paper, rubber, communications, construction, trucking, warehouse, credit/lease and electric power.