Japanese Stocks Closed Higher on Hopes For Global Economic Growth

Japanese stocks closed higher on Monday, driven by a boost from stocks sensitive to global economic growth, as investors were optimistic about positive data on US factory activities that helped the Dow index to close, adding to an increase in the previous session.

The benchmark Nikkei index advanced 0.17% to close at 28,364.61 points, while the broader Topix index increased 0.44% to 1913.04 points.

The Dow Jones Industrial Average rose on Friday after data showed that US factory activities gained momentum in early May, driven by strong domestic demand.

The shipping sector rose 5.31% and was the biggest gainer in the main bourse, followed by the aviation sector, which rose 2.70%.

Kawasaki Kaisin rose 7.64% and Mitsui Airways OSK rose 4.58%. ANA Holding rose 2.51% and Japan Airlines 2.96%.

Toyota Motor shares rose 1.05%, touching a record high for the second consecutive session, while Honda Motor shares rose 1.51% and Nissan Motor 0.89%.

But the stocks that are affected by the economic cycle and related to the local economy have put pressure on the market as the progress of Japan’s recovery from the consequences of the Covid-19 pandemic continues to be slow.