On Monday, the Nikkei share average reached its highest level in 33 years as Wall Street rallied and investors gambled on domestic equities expecting the Bank of Japan to maintain its ultra-loose policies.
The Nikkei index (.N225) rose 2.2% to 32,217.43, its highest closing since July 1990 and greatest daily increase since Jan. 18.
.TOPX rose 1.7% to 2,219.79.
U.S. market advances on Friday bolstered the market. “That kept money flowing into risk assets in Japan,” said Tachibana Securities research department general manager Shigetoshi Kamada.
Since the BOJ is projected to keep rates low, Japanese equities are better off than U.S. Kamada noted that buying Japanese stocks when U.S. shares rise is justified.
The Bank of Japan’s two-day policy meeting begins June 15.
Kamada added that Japanese firms’ shareholder return efforts encouraged sentiments.
After a labor market report showed sluggish wage growth in May, the Federal Reserve may postpone a rate hike in two weeks, and investors hailed a Washington compromise to avert a catastrophic debt default, U.S. stocks rose on Friday.
Fast Retailing (9983.T), which owns Uniqlo, rose 3.86%. Advantest (6857.T) gained 3.38%, and Fanuc (6954.T) was 4.53%.
Tokyo Electron (8035.T) and Screen Holdings (7735.T), which initially tracked the Philadelphia semiconductor index (.SOX), rose 0.75% and 1.9%, respectively.
Machinery (.IMCHN.T) led the gains, climbing 3.12%. Shippers gained 2.86%.
Utilities fell 0.6%. Tokyo Electric Power Holdings (9501.T) fell 3.64%, the biggest Nikkei loser.
