Thu, 29 Jul 2021

TOKYO, June 14 (Xinhua) -- Tokyo stocks closed higher Monday, with the benchmark Nikkei stock index hitting a one-month high following eased concerns about the U.S. Federal Reserve tapering stimulus and hopes for the economic recovery as efforts here to ramp up the country's vaccination campaign go into effect.

The 225-issue Nikkei Stock Average gained 213.07 points, or 0.74 percent, from Friday to close the day at 29,161.80.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 5.73 points, or 0.29 percent, to finish at 1,959.75.

Investors took their cues from gains made on Wall Street late last week and in U.S. stock futures rising, local brokers said, with cyclical issues such as shipping firms rising on hopes for the global economic recovery from the COVID-19 pandemic.

They added that following data last week showing the U.S. consumer price index marked its fastest increase in nearly 13 years, jumping 5 percent, investors were confident the Fed would not move to taper stimulus in the near-term, although were eyeing an upcoming meeting for further clues.

"But investors were awaiting the Fed policy meeting for the latest information," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.

He added that investors would be keenly eyeing comments by Fed Chairman Jerome Powell following the conclusion of its two-day policy meeting starting Tuesday for any clues about the timing of its tapering measures.

Other analysts said that cyclical issues gained traction on hopes for the outlook of the global economy, based on Japan's vaccination campaign being given a boost by mass inoculation centers opening up, along with plans for businesses and universities to double-up as vaccination hubs.

"Japanese shares are still trailing behind global shares, as earnings recovery is expected to be delayed. But hopefully, things will get better with vaccinations speeding up now. We could have 60 percent of the population get vaccinated by August," Hiroshi Watanabe, a senior economist at Sony Financial Holdings, was quoted as saying.

By the close of play, marine transportation, rubber product and metal product issues comprised those that gained the most.

Among shipping firms finding favor, Mitsui O.S.K. Lines gained 1.0 percent, while Kawasaki Kisen rose 1.8 percent. Nippon Yusen, meanwhile, ended the day 2.3 percent higher.

Among other cyclicals, tire makers accelerated, with Bridgestone advancing 1.3 percent, while Yokohama Rubber gained 2.9 percent.

Tech-linked shares followed their U.S. peers higher, with industrial robotics maker Fanuc jumping 3.2 percent, while Keyence added 2.7 percent. M3, for its part, closed the day 4.5 percent higher.

Financial issues lost ground, however, after U.S. Treasury yields retreated last week, with Mizuho Financial Group down 0.9 percent and MUFG dropping 1.0 percent.

Issues that rose outpaced those that fell by 1,109 to 972 on the First Section, while 113 ended the day unchanged.

On the main section on Monday, 854.23 million shares changed hands falling from Friday's volume of 1,221.15 million shares.

The turnover on the first trading day of the week came to 1,964.63 billion yen (17.92 billion U.S. dollars).

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