TOKYO: Japan’s Topix index rose for a seventh straight session, as the yen’s weakness lifted automakers, while bank shares tracked the strong performance of their US peers at the end of last week.
The benchmark Nikkei share average cut its early gains in the morning session, dragged by Uniqlo brand owner Fast Retailing.
The broader Topix had gained 0.19% to 2,022.61 by the midday break.
The Nikkei share average edged down 0.06% to 28,475.31, after rising as much as 0.37%, but hovered at its highest level since March 9. “Overall, the market is strong, supported by the yen’s weakness, which lifted automakers.
And banks tracked sharp gains of US bank shares on Friday,“ said Jun Morita, general manager of the research department at Chibagin Asset Management.
“But I would say the market is stronger than it should be because there are signs of an economic slowdown going forward.”
Tokyo stocks recover from losses to end higher
Among individual stocks, Toyota Motor rose 1.63%, providing the biggest support to the Topix. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group gained 1.7% and 1.77%, respectively.
At the end of last week, the S&P 500 banking sector jumped 3.5%, as a series of major US banks, such as Citigroup Inc and JPMorgan Chase & Co beat earnings expectations, benefiting from rising interest rates and easing fears of stress in the banking system.
In Japan, shippers rose 2.11% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes. Kawasaki Kisen rose 2.73%.
Robot maker Fanuc rose 2.93% to become the top performer on the Nikkei.
Uniqlo brand owner Fast Retailing lost 2.71%, after surging 8.5% in the previous session, becoming the biggest drag for the Nikkei.
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