TOKYO: Japan's Nikkei advanced to a more than one-month high on Monday, tracking gains in US shares that helped buoy cyclical stocks such as shippers, while a weaker yen boosted exporters.The Nikkei share average rose 0.3 per cent to 20,719.33, its highest close since Dec.
19.The broader Topix rose 0.6 per cent to 1,566.37, with only 1.12 billion shares changing hands, lowest level since September.US stocks rallied on Friday as increased hopes United States and China would resolve their trade dispute lifted shares across sectors.Analysts said Nikkei was on track to reach 21,000 points, a level it had traded last month before a year-end rout."It would be a bit difficult to rise towards 22,000 with current catalysts but market is recovering," said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute.Cyclical stocks such as exporters gained ground.
Shares of TDK Corp surged 3.3 per cent, while those of Sumco Corp and Nidec Corp jumped 4.3 per cent and 3.5 per cent, respectively.The Japanese yen recovered 0.2 per cent against dollar after falling more than 1 per cent last week."Commodity trading advisers are likely covering their short positions on Japanese stocks on back of a recovery in dollar-yen levels and oil prices," said Masanari Takada, a cross-asset strategist at Nomura Securities.Shippers outperformed after baltic dry index, or freight charges, jumped 3.3 per cent.
Shares of Mitsui OSK Lines rose 3.5 per cent.
Kawasaki Kisen soared 3.6 per cent, after Nikkei business daily reported that company is considering resuming a dividend payout for year ending March 2020.Shares of Lixil Group Corp jumped 4.6 per cent after Nikkei Business reported that its board decided last year to consider delisting from Japan through a management buyout (MBO) and moving its headquarters to Singapore.
The company denied report, but investors welcomed report anyway."Lixil's stock price had been falling quite sharply due to short-selling, but short sellers are seen covering their positions because in case company goes with a management buyout, it would buy stock at a higher price than what is trading now," said a fund manager at a Japanese asset management firm.
(Reporting by Ayai Tomisawa Editing by Jacqueline Wong)