Japanese shares rose on Monday as optimism around the passage of a massive U.S. stimulus package boosted cyclical shares, although declines in tech stocks weighed on the benchmark.
The Nikkei share average .N225 edged up 0.3% to 29,806.41 by 0219 GMT, while the broader Topix .TOPX rose 0.66% to 1,963.81
“Today’s market in Japan is a reflection of the U.S. market on Friday,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
The Dow Jones Industrial Average.DJI rose to its fifth consecutive record high on Friday as the U.S. House of Representatives gave final approval to the $1.9 trillion COVID-19 relief bill. are buying cyclical shares that would benefit from a recovery of the U.S. economy, which would be accelerated by the huge economic package that was approved,” Arisawa said.
Japanese transport and materials stocks advanced.
Shipbuilder Mitsui E&S Holdings 7003.T surged 7.22%, while shipping firms Kawasaki Kisen 9107.T and Nippon Yusen 9101.T rose 3.96% and 4.31%, respectively.
Steelmaker JFE Holdings 5411.T jumped 3.39% and industrial conglomerate Kawasaki Heavy Industries 7012.T gained 3.96%.
E-commerce firm Rakuten 4755.T surged 18% after announcing a capital tie-up with postal giant Japan Post Holdings 6178.T, making it the biggest gainer in the Nikkei. Japan Post gained 1.71%. heavyweight SoftBank Group 9984.T, down 1.36%, and other tech shares fell, following Nasdaq’s decline on Friday.
Tokyo Electron 8035.T lost 0.78% and Advantest 6857.T fell 0.8%.
The stocks that gained the most among the top 30 core Topix names were Honda Motor 7267.T, which rose 3.42%, followed by Mitsubishi UFJ Financial Group 8306.T, which gained 3.21%.
The underperformers among the Topix 30 were Nidec 6594.T, down 1.71%, followed by SoftBank Group.News Source: Investing.com