Nikkei closes at the highest level in a month amid optimism about growth in China

Japan’s Nikkei index closed at its highest level in more than a month on Monday, boosted by equipment and technology shares, after stimulus measures in Shanghai and the easing of Covid-19 restrictions calmed fears of a sharp slowdown in China, the world’s second-largest economy.

The Nikkei index rose 2.19 percent to close at 27,369.43 points, its highest level since April 21. The broader Topix index rose 1.86% to 1,922.44 points.

And adding to the risk appetite, news that the authorities in Shanghai will cancel many conditions imposed on companies to resume their work from Wednesday, easing the closure measures that included the entire city, which began two months ago.

Wall Street closed significantly higher on Friday, as signs of persistently high inflation prompted investors to enter a long weekend in hopes that the Federal Reserve could tighten monetary policy without tipping the economy into a recession.

Daikin Industries rose 6.53 percent, and Kubota rose 3.58 percent.

Sony Group shares rose 4.99 percent.