What role did expectations of easing lockdowns play in buying sentiment?

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Easing Lockdowns and Economic Rebound Expectations Fueled Buying Sentiment in Tokyo's Stock Market

Expectations of continued economic measures and the further easing of lockdowns in pandemic-hit economies played a significant role in bolstering buying sentiment in Tokyo's stock market. The Nikkei 225 index rose for a fourth consecutive session, gaining 0.36 per cent, or 81.98 points, to close at 22,695.74. Similarly, the broader Topix index advanced 0.30 per cent, or 4.74 points, to 1,603.82, reflecting a broader market uptrend.
Positive Lead from Wall Street

The Tokyo market opened higher, mirroring a positive lead from Wall Street. US stocks had surged, driven by optimism about an economic rebound following the lifting of coronavirus-related shutdowns. This global sentiment spillover indicated a widespread investor belief in economic recovery prospects.
Sustained Bargain-Hunting Amid Profit-Taking Potential

Buying sentiment was underpinned by expectations of ongoing economic stimulus measures being implemented by various countries. While the potential for profit-taking was acknowledged, bargain-hunting activities helped to sustain the market's upward momentum. This suggests investors were actively seeking opportunities despite the inherent risks.
Performance of Key Sectors

Blue-chip exporters in Tokyo showed gains, with major companies like Toyota, Sony, and Nintendo experiencing increases in their share prices. Conversely, airline stocks saw declines, with Japan Airlines and ANA Holdings falling, likely due to profit-taking following recent rallies in that sector.

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What role did expectations of easing lockdowns play in buying sentiment?

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