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2016.11.1102:18:00UTC+00Nikkei Hits Nine-Month High as Trump Policies Lifts Sentiment

Japan's Nikkei share average advanced 1.6% to 17, 621.73 in midday trading, rising to a nine-month high led by financials boosted by rising yields. Sentiment was also lifted after U.S. shares surged on bets that U.S. President-elect Donald Trump's unorthodox policies could stimulate growth.

Financial institutions including insurers and banks, which are looking to gain significant investment opportunities for their foreign debt investments in higher yields, surged after U.S. Treasury yields rose on the outlook that Trump's economic policies would drive up inflation.

However, analysts are cautioning traders and investors that the rapid spike in the market will also result into sharp profit-taking.

Exporters also continued to gain due to the weaker yen with Toyota Motor Corp. and Honda Motor Co. advanced 2.5% and 1.4% respectively.

The broader Topix rose 1.3% to 1, 391. 71 while the JPX-Nikkei Index 400 added 1.3% to 12, 507. 70.

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