Japanese shares end higher on Wall St gains, financials weigh

Japanese shares ended higher on Monday, underpinned by Wall Street’s strength in the previous session, with heavyweight technology and energy stocks leading the gains, while a drop in banks and insurers weighed on the market.

The Nikkei share average (.N225) rose 0.65% to close at 26,405.87, while the broader Topix (.TOPX) edged up 0.24% at 1,902.52.

“Japanese shares rose because US equities gained at the end of last week, but the trading is very quiet with most participants in the US and Europe away for holidays,” said Shuji Hosoi, senior strategist at Daiwa Securities, reported Reuters.

Heavyweight Fast Retailing (9983.T), owner of the Uniqlo brand, rose 2.0% and chip-making equipment maker Tokyo Electron (8035.T) gained 2.22%. Air-conditioning maker Daikin Industries (6367.T) climbed 1.39%.

The rise in oil prices pushed the oil explorers index (.IMING.T) up 2.5%, making it the top gainer among the 33 industry sub-indexes on the Tokyo Stock Exchange. Inpex (1605.T) jumped 2.53%.

The crude refiners’ index (.IPETE.T) gained 1.33%, with Idemitsu Kosan (5019.T) rising 2.81%.

The banking sector lost 1.35% after surging more than 10% so far this month on expectations for better profits after the central bank last week allowed the 10-year government bond yield to rise up to 0.5% last week, from 0.25%. The 10-year JGB yield was last at 0.445%.