Japan’s Nikkei Closes Higher

Japanese stocks closed higher, after falling for two consecutive sessions, as investors held decliners, while carmakers and semiconductor stocks led the rally.

The Nikkei index rose 1.39% to 28,633.46 points, while the broader Topix index rose 0.56% to 1,855.84 points.

Sentiment was boosted after Chinese data released on Monday raised hopes that the strength of the world’s second largest economy would support growth in the region.

The Chinese economy’s recovery beat analysts’ expectations in the fourth quarter, with the economy growing 6.5% year on year, according to data from the National Bureau of Statistics.

In Japan, chip-related shares advanced, with Rohm stocks jumping 4.51% after Nomura Securities raised its price target.

TDK gained 2.76%, while Tokyo Electron gained 2.11% and Advantest gained 4.22%.

Automakers also rose, with Mazda Motor jumping 5.5%, Nissan Motor gain 3.91%, and Suzuki Motor rising 3.89%. Toyota Motor added 0.94% and Honda Motor added 1.69%.

Fast retailer rose 3.06% after a report that the operator of the Uniqlo clothing store chain would add payment functionality to its smartphone app.

SoftBank Group led the gainers among the 30 main stocks on the Topix index, up 3%, followed by Hitachi, which rose 2.6%.

Hoya Corp was the lowest-performing stock on the Topix 30, down 1.94%, followed by Seven and I Holdings, which lost 1.60%.