TOKYO (Reuters) – Japanese shares ended higher on Monday, underpinned by Wall Street’s strength within the previous session, with heavyweight technology and energy stocks leading the gains, while a drop in banks and insurers weighed in the marketplace.
The Nikkei share average rose 0.65% to shut at 26,405.87, while the broader Topix edged up 0.24% at 1,902.52.
“Japanese shares rose because U.S. equities gained at the tip of last week, however the trading may be very quiet with most participants within the U.S. and Europe away for holidays,” said Shuji Hosoi, senior strategist at Daiwa Securities.
Heavyweight Fast Retailing, owner of the Uniqlo brand, rose 2.0% and chip-making equipment maker Tokyo Electron gained 2.22%. Air-conditioning maker Daikin Industries climbed 1.39%.
The rise in oil prices pushed the oil explorers index up 2.5%, making it the highest gainer among the many 33 industry sub-indexes on the Tokyo Stock Exchange. Inpex jumped 2.53%.
The crude refiners’ index gained 1.33%, with Idemitsu Kosan rising 2.81%.
The banking sector lost 1.35% after surging greater than 10% up to now this month on expectations for higher profits after the central bank last week allowed the 10-year government bond yield to stand up to 0.5% last week, from 0.25%. The ten-year JGB yield was last at 0.445%.
Sumitomo Mitsui Financial Group lost 2.21%, while Resona Holdings fell 2.75%.
The insurance sector fell 1.37%.
“The ten-year government bond yield hovers below the highest end of the Bank of Japan’s (BOJ) policy band, which prompted a sell-off of banking shares,” Hosoi said.
There have been 158 advancers on the Nikkei index against 60 decliners.
The quantity of shares traded on the Tokyo bourse’s primary board was 0.85 billion, in comparison with the common of 1.25 billion prior to now 30 days.
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)
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