TOKYO, Aug 31 (Reuters) - Japanese shares reclaimed lost ground on Tuesday to end their 11-month-long anomaly of closing lower on the last trading day of the month, helped by stronger Asian peers and domestic political developments. The Nikkei share average climbed 1.08% to 28,089.54, closing above the 28,000 level for the first time since Aug. 12. The broader Topix gained 0.54% to 1,960.70. “The rebound was a positive surprise. Investors sought to buy indexes as they confirmed corporate earnings are solid,” Kentaro Hayashi, a senior strategist at Daiwa Securities said. The market struggled earlier this month as strong corporate earnings had been undermined by concerns about worsening coronavirus infections worldwide. “The sentiment was also lifted by the Chinese market and gains in the U.S. stock futures.” Chinese equities recovered from an early loss, while U.S. futures rose during the Asian trading after S&P 500 and Nasdaq extended their record peaks overnight. [.N} Global tech startup investor SoftBank Group ended 0.47% higher after falling 0.75% earlier in the session. Uniqlo clothing store operator Fast Retailing and chip making equipment maker Tokyo Electron also reversed course to close up 2.1% and 1.44%, respectively. The market changed its direction after the news that Japanese Prime Minister Yoshihide Suga is set to replace an unpopular long-term ally Toshihiko Nikai as he seeks to shore up support ahead of a party leadership election he must win before the general election planned for October. Shippers and steel makers also climbed. Airlines and railways weighed on the Nikkei the most as the country still battles with severe COVID-19 cases, which stood at record levels, leaving many people to recuperate at home amid a shortage of critical-care beds. Japan Airlines and ANA Holdings lost 1.56% and 2.07%, respectively. (Reporting by Junko Fujita in Tokyo and Anushka Trivedi in Bangalore; Editing by Uttaresh.V and Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.
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