Tokyo stocks closed higher on Monday, buoyed by overnight gains in the U.S. stock market and an overall improvement in market sentiment.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, rose by 435.13 points, or 1.13 percent, from Friday’s close, finishing the day at 38,923.03. Meanwhile, the broader Topix index increased by 25.58 points, or 0.92 percent, closing at 2,798.07.
Market observers noted that the U.S. stock market experienced a significant rebound, with the Dow Jones Industrial Average recording its largest single-day gain in nearly a year, after four consecutive days of losses. This boost in the U.S. market helped to ease concerns over persistent inflation, contributing to the positive sentiment in Tokyo.
Despite the overall positive trend, Tokyo’s gains were somewhat limited. Underperformance in semiconductor-related stocks and speculation about potential policy adjustments by the Bank of Japan weighed on the market, according to local analysts.
Investor sentiment was further dampened in the afternoon by a drop in automobile stocks, such as Toyota, following reports of improper vehicle certifications.
On the Prime Market, sectors that led the gains included securities houses, insurance, and marine transportation. Overall, advancing issues outnumbered declining ones by 1,025 to 563, with 58 ending the day unchanged.
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