TOKYO: Tokyo stocks advanced Monday following Wall Street gains, as investors shrugged off data showing a worse-than-expected quarterly contraction in Japan's economy. The benchmark Nikkei 225 index gained 0.56 percent, or 166.83 points, to 29,776.80, while the broader Topix index added 0.39 percent, or 7.92 points, to 2,048.52.
The dollar stood at 113.80 yen, against 113.85 yen in New York late Friday. A rally on Wall Street encouraged investors to drive up the Nikkei from early trade, analysts said. The global momentum overshadowed figures showing that the world's third largest economy shrank 0.8 percent on-quarter in the three months to September.
But analysts predict that the weakness was likely short-lived as Japan's vaccination programme has picked up speed, while the government lifted virus restrictions in October. "Maintaining solid momentum from last week, Tokyo shares opened higher," SMBC Nikko Securities said in a note.
Shares related to services, transport equipment, and paper advanced, while insurers, maritime shipping and aviation eased, the brokerage said. "The downswing in the GDP data, released shortly before the market opened, was not seen as a factor that dragged down the market," Okasan said.
"Rather, investors bought shares of companies that issued strong earning reports, which are heavily weighted in the Nikkei index," it said.