TOKYO: Japan’s Nikkei rose for a third straight session on Monday, lifted by heavyweight technology stocks, after a surge in Wall Street at the end of last week.
The Nikkei share average closed 1.43% higher at 26,871.27 points, after rising as much as 1.7% The broader Topix jumped 1.12% to 1,887.42.
Wall Street’s main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve’s rate-hike plans.
“US equities rose on Friday in part investors tried to adjust their allocations at the end of the half-year after sharp losses of the Wall Street throughout the month,” said Ikuo Mitsui, fund manager at Aizawa Securities.
“Japanese stocks tracked that but gains were limited as investors started selling shares as the Nikkei got close to the 27,000 mark. Concerns about economic slowdown due to tightening monetary policy still remains.”
In Japan, technology investor SoftBank Group rose 3.71% and provided the biggest boost to the Nikkei.
Chip equipment maker Tokyo Electron rose 2.23%. Silicon wafer maker Shin-Etsu Chemical advanced 4.74% and chip-testing equipment maker Advantest climbed 3.79%.
Shippers jumped 5.87%, rebounding from a 3.1% drop last week, and led gains among the Tokyo Stock Exchange’s 33 industry sub-indexes.
Kawasaki Kisen Kaisha and Nippon Yusen were the best performers on the Nikkei, rising 9.64% and 5.36%, respectively.
Tokyo Electric Power Company Holdings jumped 7.55% as Japan braced for a possible power crunch amid soaring temperatures across the country.
Sapporo Holdings rose 0.51%.
The beer maker announced the acquisition of US craft beer maker Stone Brewing.
The real estate sector lost 0.75% was the worst performer among the industry sub-indexes.