Japanese stocks end higher on hopes of global economic growth
TOKYO, May 24 (Reuters) – Japanese stocks ended higher on Monday, led by stocks sensitive to global economic growth, as investors encouraged bullish data on US factory activity that helped the Dow index finish higher in its previous session.
The Nikkei Stock Average .N225 edged up 0.17% to close at 28,364.61, while the larger Topix .TOPX increased 0.44% to 1,913.04.
The Dow Jones Industrial Average rose on Friday after data showed US factory activity accelerated in early May amid strong domestic demand. .NOT
âInvestors had a renewed vision for global economic growth after the Dow Jones rose (Friday), which is why shippers and automakers were strong,â said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
“But this trend may not continue for long as there are many uncertainties ahead. If the economy grows rapidly, then there will be downside possibilities, which would push the stock markets down.”
The maritime transport sector .ISHIP.T, up 5.31%, gained the most on the main stock exchange, followed by the airline industry .IAIR.T, which increased by 2.70%.
Kawasaki Kisen 9107.T jumped 7.64% and Mitsui OSK Lines 9104.T increased by 4.58%. ANA Holdings 9202.T and Japan Airlines 9201.T increased by 2.51% and 2.96% respectively.
Toyota engine 7203.T rose 1.05% to a record for the second consecutive session, while Honda Motor 7267.T and Nissan Motor 7201.T gained 1.51% and 0.89% respectively.
Cyclical stocks, which are tied to the domestic economy, weighed on the market as Japan continues to see slow progress in its recovery from the damage caused by the COVID-19 pandemic.
Retailer J. Front Retailing 3086.T fell 2.02% and Marui Group 8252.T loses 2.31%, while Isetan Mitsukoshi Holdings 3099.T lost 1.26%.
Japan extended the state of emergency to the southern island of Okinawa on Friday, while the country’s second largest city, Osaka, remains under a huge wave of new infections.
(Reporting by Junko Fujita; Editing by Uttaresh.V and Devika Syamnath)
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