Japan’s Shares Rise as US Rebound Boosts Mood, Tech Firms Gain
Japanese shares are rising Monday, as the rebound in US stocks on Friday bolstered investor sentiment.
A lack of new negative developments regarding tariffs, bullishness toward China after it said it would take steps to revive consumption, and the US government’s avoidance of a shutdown helped improve investors’ mood in Tokyo.
Topix Index rose 1.1% to 2,745.03 as of 9:16 a.m. Tokyo time.
Nikkei advanced 1% to 37,423.93.
Mitsubishi Heavy Industries Ltd. contributed the most to the Topix Index gain, increasing 7%. Out of 1,692 stocks in the index, 1,342 rose and 274 fell, while 76 were unchanged.
The rise in US semiconductor stocks is prompting buying in electronics and machinery shares, while trading companies and non-ferrous metals firms are also climbing. Financials such as banks, securities companies and insurers are advancing as well after US Treasury yields climbed.
“It seems that US stocks will enter a recovery phase for the time being, based on technical indicators” and negative investor sentiment appearing to bottom out, said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab. “Japanese stocks have lagged behind, and investment funds are flowing in from the US,” making it likely that the country’s shares will hit bottom in March, he said.
Source : Bloomberg
