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Japan’s Nikkei average on Monday posted its highest one-day rise in two months as investors bought back shares after losses at the end of last week, but tourism-related stocks fell amid concerns about the impact of a Chinese ban on seafood imported from Japan.
The Nikkei rose 1.73 percent to 32,169.99 points at the close, its biggest daily rise since June 28. The broader Topix index gained 1.47 percent to reach 2,299.81 points.
“Short-term investors bought back shares after sharp declines on Friday. Gains on Wall Street in the previous session also lifted sentiment,” said Takehiko Masuzawa, head of trading at Philip Securities in Japan.
US stocks closed higher on Friday as investors digested the impact of Federal Reserve Chairman Jerome Powell’s remarks that the US central bank may need to raise interest rates to ensure inflation is contained.
Fast Retailing, owner of Uniqlo stores, rose 1.6 percent, becoming the Nikkei’s biggest support. Air-conditioning maker Daikin Industries jumped 4.19 percent.
Toyota Motor rose 1.73 percent, providing the biggest support for the index, the Topix index.
Tourism-related stocks fell on concerns about a possible drop in Chinese tourists’ spending on Japanese goods and services, due to China’s sweeping ban on all seafood imported from Japan.
China announced the move after Japan released radioactive treatment water from the Fukushima nuclear power plant to the Pacific Ocean. The move came after the recent resurgence of Chinese mass tourism tours, which led to increased expectations of increased tourist consumption in Japan.
J.Frant Retailing fell 4.18 percent, becoming the worst performer on the Nikkei. Isetan Mitsukoshi Holdings lost 3.03 percent, and Takashimaya dropped 3.15 percent.
Cosmetics maker Shiseido fell 2.55 percent.
All sub-indices of the Tokyo Stock Exchange rose except for two.
Aviation sector shares fell 1.31 percent, and the retail companies index fell 0.13 percent.
