Japan’s benchmark Nikkei stock index closed higher on Monday, helped by Wall Street’s solid close late last week, as energy issues gained on a decision to cut output by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The 225-issue Nikkei Stock Average added 146.67 points, or 0.52 percent, from Friday to close the day at 28,188.15.
The broader Topix index, meanwhile, gained 14.18 points, or 0.71 percent, to finish at 2,017.68.
Brokers here said that stocks traded in the positive territory from the get-go, with oil-linked shares leading the charge, following a robust performance by U.S. stocks late last week, but mainly down to the surprise decision by OPEC+ to reduce output from May.
Strategists said, however, that as oil-oriented issues advanced, the market’s upside was ultimately capped by high technology issues retreating in twine with U.S. tech-related futures falling with a rise in U.S. long-term interest rates.
“While oil-related stocks lifted the market, it was capped by technology issues’ losing ground, as U.S. tech-related futures dropped with a rise in U.S. long-term interest rates,” Toshikazu Horiuchi, an equity strategist at IwaiCosmo Securities Co., was quoted as saying.
U.S. interest rates rose owing to the likelihood of higher oil prices could lead to inflation rising further, which would hurt both businesses and households who would see interest rates further raised, analysts here explained.
Energy-linked issues finding favor included oil exploration giant Inpex jumping 5.5 percent, while top refiner Eneos added 3.2 percent.
Engineering firm JGC Holdings, meanwhile, leaped 5.9 percent, by the close.
Technology issues weighing, however, included, chip-manufacturing equipment maker Tokyo Electron dropping 2.1 percent, while chip-testing equipment maker Advantest fell 4.3 percent.
By the close of play, mining, oil and coal product, and consumer credit issues comprised those that gained the most.
The turnover on the first trading day of the week came to 2,827.81 billion yen (21.19 billion U.S. dollars).
