TOKYO: Japan’s Nikkei share average gained in choppy trade on Monday, boosted by financials as the economy grew more than expected, while automakers dragged on threats of US tariffs aimed at imported cars.
The Nikkei added 0.1% to close at 39,174.25 after seesawing between gains and losses for much of the session. The broader Topix climbed 0.3% to 2,766.9.
Rate-sensitive banks gained 0.9% and shorter-term Japanese government bond yields marched higher after data showed Japan’s economy expanded an annualised 2.8% in the October-December quarter.
The latest Gross Domestic Product (GDP) figures appeared to support the Bank of Japan’s plan to keep hiking interest rates and normalise monetary policy.
Megabanks Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group both added about 2%.
Investors sized up the latest tariff salvo after US President Donald Trump said on Friday that tariffs on automobiles would be coming as soon as April 2, without any further details.
“There are a lot of uncertainties…, leaving just a vague impression that tariffs will be increased,” said Kazuo Kamitani, an equities strategist at Nomura Securities.