TOKYO: Japan’s Nikkei share average rose on Monday even as the conflict between Israel and Iran continued, with a weaker yen supporting sentiment.
As of 0155 GMT, the Nikkei was up 0.9% at 38,164.07, while the broader Topix rose 0.54% to 2,772.46.
“Investors were less worried about geopolitical tensions in the Middle East, and the market saw no need for additional sell-offs,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
“There is an optimism that the conflict will be contained with countries like the United States and Russia stepping in,” he added.
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The Nikkei fell on Friday after Israel launched strikes against Iran, and Wall Street ended sharply lower later in the day. On Monday, Advantest jumped 8% to provide the biggest boost to the Nikkei.
The chip-making equipment maker, one of the largest components of the Nikkei, tends to be bought when the market bets the upside of the benchmark index.
Automakers rose on the back of a weaker yen, with Honda Motor and Nissan Motor rising 3.4% and 1%, respectively.
Toyota Motor was up 0.4%. The yen fell at the end of the week as investors bought safe-haven assets, such as the US dollar.
The greenback was last up 0.17% to 144.325 against the Japanese yen.
A weaker Japanese currency tends to boost shares of exporters, as it increases the value of overseas profits in yen terms when firms repatriate the money to Japan.
Nippon Steel rose 2.4% after U.S President Donald Trump approved its $14.9 billion bid for US Steel on Friday.
The sector for steel makers rose 1.77% to become the top performer among the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes.
The shipping sector rose 1.66% on expectations for rising freight rates amid the Middle East conflict.
Kawasaki Kisen rose 2.4%. Of more than 1,600 stocks trading on the TSE’s prime market, 66% rose and 28% fell with 4% trading flat.
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