Tokyo shares close higher

TOKYO

Tokyo shares closed higher yesterday, lifted by gains on Wall Street last week, though the spread of COVID in China weighed on investor sentiment.

The benchmark Nikkei 225 index climbed 0.65 percent, or 170.62 points, to end at 26,405.87, while the broader Topix index firmed 0.24 percent, or 4.58 points, to 1,902.52.

A set of fresh data last week indicated a slowing of U.S. inflation, although many investors kept their guards high, predicting sluggish overall growth next year.

“While inflation may be receding... investors will likely remain sufficiently skeptical until we see a more sustained and pronounced deceleration,” Stephen Innes of SPI Asset Management said in a commentary.

Amid thin holiday trade, investors were also keeping their eyes on spiking virus cases in China after the world’s second-largest economy dropped its zero-COVID policy.

Mizuho Securities noted that traders would not aggressively buy shares ahead of year-end holidays.

In Japan, players also monitored the falling approval rating for the government of Prime Minister Fumio Kishida.

Local media say Kishida may replace his reconstruction minister as soon as today over a political funds scandal.

It would make him the fourth minister under Kishida to be dismissed in the past few months over scandals involving money or ties with the Unification Church.

The dollar stood at 132.57 yen, compared with 132.82 yen seen Friday in New York.

In Tokyo trading, Advantest, which makes testing kits for semiconductors, gained 1.17 percent to 8,600 yen while chip-making equipment manufacturer Tokyo Electron jumped 2.21 percent to 40,070 yen.

Energy developer Inpex roared 2.52 percent to 1.461 yen.

Nissan grew 1.93 percent to 420.8 yen while Toyota advanced 0.27 percent to 1,823 yen.