Japan shares end higher on Monday

Japanese shares ended higher on Monday as upbeat earnings from shippers and other cyclical firms countered concerns about the fast-spreading Delta coronavirus variant, which threatens a fragile recovery in the economy.

The Nikkei average ended 1.82 per cent higher at 27,781.02, erasing losses made on Friday, when it marked its lowest close since early January.

The broader Topix gained 2.05 per cent to 1,940.05, its highest close since July 14. Shippers led gains, adding 9.2 per cent to hit a 13-year high, following strong earnings from Mitsui OSK. The sub-index has gained 18.2 per cent over the past two sessions.

Mitsui OSK shares jumped 10.6 per cent, while rival Kawasaki Kisen soared 9.1 per cent and Nippon Yusen added 8.5 per cent. Automobile parts maker Denso jumped 5.0 per cent, extending its gains to a second session after reporting strong earnings. NEC rose 4.0 per cent after the electronics and IT company posted a surprise return to profits in the April-June quarter.

Misumi Group gained 8.8 per cent to hit a record high, after the trading firm specialised in factory automation and machine parts reported brisk earnings.

With about 40 per cent of Topix companies having reported their earnings, operating profit grew about 240 per cent from a year earlier, analysts at Okasan Securities wrote. Of those, 211 firms posted positive surprises, compared with 76 with negative ones, they said.