TOKYO: Japanese shares jumped on Monday, snapping a three-day losing streak, as optimism on economic recovery from the pandemic prompted fresh buying in materials, travel-related and other cheap cyclical stocks.
Nikkei share average rose 0.46% to 30,156.03, while the broader Topix gained 0.49% to 1,938.35. Investors scooped up cyclical shares with cheap valuation including Yokohama Rubber and Sumitomo Metal, which gained 8.9% and 7.2%, respectively.
Travel-related shares also advanced as investors bet on a continued recovery in the global economy with COVID-19 vaccination programmes gathering pace across the world. Airliner ANA Holdings notched up 5.8%, while rival Japan Airlines added 5.7%. Department store operators also bounced back, with J.Front Retailing up 2.4% and Takashimaya trading 1.6% higher. Chip-related shares continued to do well, with Tokyo Electron gaining 6.3%.
Rise in US bond yields also lifted Japanese financials, which are considered to benefit from higher interest income, with banks up 1.8% and insurers adding 0.8%.