TOKYO: Japan’s Nikkei index rose for the first time in three days on Monday, with a weaker yen boosting sentiment in the exporter-heavy market, but worries about a global banking crisis weighed on financial shares, capping gains.
The Nikkei ended the day 0.33% higher at 27,476.87, and was at one point in the afternoon up at a two-week high of 27,385.25. Of the 225 component stocks, 161 were up, while 57 fell and seven were flat.
The broader Topix rose 0.33% to 1,961.84.
Among the Tokyo Stock Exchange’s 33 industry sectors, land transport was the best performer, climbing 1.78%. Banking was the biggest decliner, down 0.54%. “Amid all the concerns about a banking crisis, for this week I expect the Nikkei to stay heavy,” said Kazuo Kamitani, a strategist at Nomura.
“For the time being, the outlook is for either sideways trading in a narrow range or edging lower,” although “the bottom looks quite firm,” particularly around 27,300, he said. Uniqlo store operator Fast Retailing Co Ltd was the biggest support for the Nikkei, contributing 28 points to the index’s 92 point advance with a 1% gain.
Japanese shares trade lower as stronger yen raises earnings concerns
Automakers were firm after the yen’s pullback from a nearly two-month high to the dollar.
Suzuki Motor Corp rallied 1.37%, Subaru Corp added 0.53% and Honda Motor Co Ltd gained 0.62% At the other end, chipmaking equipment maker Tokyo Electron Ltd was the biggest drag, erasing 43 index points with a 2.5% slide, tracking declines from Friday in US peers.
Concordia Financial Group Ltd was Nikkei’s worst-performing financial stock, losing 1.68%.
Chiba Bank Ltd lost 1.2% and Shizuoka Financial Group Inc declined 1.06%.
Sumitomo Mitsui Financial Group Inc fell 1.01%.
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