TOKYO: Japanese stocks closed higher on Monday, with the yen a touch weaker, on hopes the global economy could hold up in the face of high inflation and interest rates, but moves were modest ahead of Bank of Japan Governor Kazuo Ueda’s first news conference.
The Nikkei share average rose 0.42% to close at 27,633.66, and the broader Topix gained 0.56% to 1,976.53.
Markets have been buffeted in recent weeks by wild swings in global interest rate expectations, which can form the basis for equity valuations and the growth outlook.
However, projections have lately been stabilising around bets that a peak for US interest rates is close at hand, and steady US labour data last week fed hopes that the economic damage may not be so bad.
“Japanese equities rose on expectations that the US labour market will remain firm,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management in Tokyo, though gains were capped without much else to guide trade.
Markets in Hong Kong, Europe and the US were closed on Friday and several remain shut on Monday for Easter.
Among gainers were Disney Park operator Oriental Land Co , up 2.67% to close at a one-year high, as investors cheered the ebbing of the COVID-19 pandemic.
Nintendo shares rose 4%. A weaker yen boosts earnings for exporters.
The rates-sensitive insurance and banking sectors steadied, with the indexes up 1.21% and 0.62%, respectively.
Shipping firms rose 2.86% to lead gains among the 33 industry sub-indexes on the Tokyo Stock Exchange, with Nippon Yusen jumping 3.54% to become the top gainer on the Nikkei.
Later in the day, Ueda is due to make his first news conference as BOJ governor, with investors looking for clues on whether he plans to shift away from ultra-easy policy settings.