Japan's Nikkei ends higher despite Middle East conflict; Advantest soars
TOKYO: Japan's Nikkei share average climbed more than 1.0 per cent on Monday, driven by chipmaker Advantest's 9 per cent surge following a brokerage target price upgrade, as traders shrugged off geopolitical tensions between Israel and Iran.
The Nikkei rose 1.26 per cent to close at 38,311.33 and the broader Topix climbed 0.75 per cent to 2,777.13.
"Japanese shares were strong despite worries about geopolitical risks of the Middle East," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
"That was because investors were relieved that oil prices, which affect the local economy, did not spike (today)," he said.
Global investors keenly monitored the Israel-Iran conflict for any signs of escalation into a broader regional conflict.
In Japan, shares of Advantest jumped 9.63 per cent after JPMorgan Securities on Friday raised its target price to 11,000 yen from 10,500 yen. The shares were the largest contributors to the Nikkei's gains.
Uniqlo-brand owner Fast Retailing rose 1 per cent and technology investor SoftBank Group climbed 2.5 per cent.
A weaker yen also supported sentiment, said Tokai Tokyo's Yasuda.
The yen weakened late last week as investors sought safe-haven assets such as the dollar - a trend that continued through Monday. The greenback was last up 0.1 per cent at 144.235 against the Japanese yen.
A weaker yen benefits exporters, as it boosts the yen value of overseas earnings when profits are repatriated to Japan.
Shares of Nippon Steel rose 1.5 per cent after US President Donald Trump approved its US$14.9 billion bid for US Steel on Friday.
The sector for steelmakers rose 1 per cent.
The shipping sector climbed 1 per cent on expectations for rising freight rates amid the Middle East conflict. Shares of Kawasaki Kisen rose 1.38 per cent.
Of more than 1,600 stocks trading on the TSE's prime market, 69 per cent rose, 26 per cent declined and 3 per cent traded flat.
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