Japan shares post biggest gains in nearly two weeks thanks to positive results

Japanese stocks had their best day in nearly two weeks on Monday, boosted by positive corporate results, while uncertainty over the global growth outlook kept gains limited.

The Nikkei rose 0.7% to close at 27,993 points, and the broader Topix index rose 1 percent to 1960 points, their biggest gain since July 20.

The two indexes posted their best monthly performance since late 2020 in July. They outperform, despite losses of about three percent or less since the beginning of the year, the performance of global stocks, which fell 15 percent. However, analysts say there are not many factors to drive a rally.

Sumitomo Pharma shares jumped 8 percent after reporting quarterly earnings last week. Ajinomoto Food Products rose 6.4 percent, boosted by better-than-expected earnings.

Shares of Toto Building Materials rose 7.2 percent after its results were announced on Friday.

However, Sony’s stock fell 3.2% after the group cut its forecast, citing a decline in consumer appetite.

Electronics companies Fujitsu and Alpine Alpine fell 6.6 percent and 13.4 percent, respectively, after higher costs for materials and logistics affected their profits.

Corporate data and results are likely to set the tone for the rest of the week.