TOKYO: Japan’s Nikkei share average rose on Monday for the first time in three days, with automakers rallying amid a weaker yen, as investors pared bets for a hawkish policy tweak from the nation’s central bank this week.
Chip-related shares rebounded from a two-day drop, tracking moves in US peers.
Steel companies also gained, after strong earnings from Tokyo Steel saw its stock surge by the daily limit.
The Nikkei ended the morning session up 1.23% at 32,700.71. Of the index’s 225 components, 203 rose, while 22 fell. The broader Topix added 0.83% to 2,280.88.
Transport equipment makers gained 1.55% to be among the top three industry sectors on the Tokyo Stock Exchange.
Japan’s currency tumbled as much as 2 yen to nearly 142 per dollar last Friday, after Reuters reported Bank of Japan policy makers are leaning toward keeping yield curve control settings unchanged at the conclusion of a two-day policy meeting on Friday.
“There is a high probability of more media reports heading into the BOJ meeting this week that could sway foreign-exchange and other markets, so investors need to be cautious of that,” said Maki Sawada, a strategist at Nomura Securities.
The domestic earnings season also gets into high gear at the end of this week, meaning individual share movements are likely to become more pronounced going forward, she added.
Japan’s Nikkei slides for second day as chip rout accelerates
Mitsubishi Motors led gains for Nikkei auto shares, jumping 5.55%, ahead of its financial report later in the day.
Iron and steel was the TSE’s top performing sector, rallying nearly 3%.
Chip-sector giants Tokyo Electron and Advantest each jumped more than 2.5%.
Banking was the worst performing sector, slumping 1%, dragged down both by the outlook for continued YCC - which has crushed profits from lending - and a decline in American Express on Friday after it missed revenue estimates.
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