Japanese Stocks Rise on Toshiba Crisis

Japanese shares rose on Monday as cyclical stocks such as tire makers rose, while Toshiba advanced after the company announced that two board members would be retiring amid a crisis over its governance.

The Nikkei index rose 0.74% to 2,9161.80, its highest closing level since May 10. The broader Topix index rose 0.29% to 1959.75 points.

The gains come after US stocks closed higher on Friday, the S&P 500 index swallowed a record, while the Nasdaq’s gains were the largest among the three indices.

“Japan stocks are still lagging behind global equities as earnings recovery is expected to be delayed. But hopefully, things will improve with the acceleration of vaccinations for now.

Shipping stocks were the biggest gainers, with Nippon Yusen up 2.3%, followed by tire makers, Bridgestone adding 1.3% and Yokohama rep jumping 2.9%.

Toshiba’s shares rose 2.7%after the group, which is facing an escalating governance crisis, announced that it would change the candidates for membership of the board of directors at the next shareholders’ meeting and that two board members would retire.