Japan Shares Rise on US Jobs Data

Japanese shares closed higher on Monday after US jobs data eased fears of an early Federal Reserve policy easing, but strong profit-taking capped gains amid caution ahead of US inflation data this week.

The Nikkei index rose 0.27% to 29,019.24 points, after it rose 1% earlier in the session, approaching a four-week high.

The broader Topix index also reversed the trend, closing 0.08% higher to 1960.85 points.

Friday’s data showed that the US economy added 559,000 jobs in the non-farm sectors in May, less than economists’ expectations for a 650,000 job increase, dampening expectations of an early cut in asset purchases by the Federal Reserve.

The Nasdaq’s gains on Friday were boosted by Japan’s technology shares, with electronics parts maker Ibiden rising 3.51% and TDK Corp adding 2.34%.

Shipping companies benefited from the high sentiment globally and rose 2.55% to a 10-year peak, with Nippon Yusen up 2.37%, Kawasaki Kisen advancing 5.51%, and Mitsui O.S.K. Lines gaining 2.26%.

But profit-taking plunged steel companies, which posted strong gains since the beginning of the year, thanks to signs of a global recovery.

The steel producers sub-index lost 4.71%, Nippon Steel lost 5.74%, JFE Holdings fell 7.2% and Kobe Steel fell 5.2%.