By Junko Fujita
TOKYO (Reuters) -Japan’s Nikkei share average extended their gains from last week to hit a record high on Monday, tracking the Dow Jones’s higher finish last week, as a weaker yen boosted automakers’ stocks.
The Nikkei rose 0.7% to 43,683.56 as of 0137 GMT. The broader Topix also scaled a record peak, gaining 0.58% to 3,125.6.
Japanese shares rallied this month on renewed optimism over the domestic corporate outlook as the impact of U.S. tariffs became clearer.
“Domestic equities kept the momentum from last week. There was an expectation that foreign investors would continue buying Japanese stocks,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
Fast Retailing gained 1.2% to lend the biggest boost to the Nikkei.
Automakers rose, with Toyota Motor and Honda Motor rising 1.58% and 1.22%, respectively, as the yen lost 0.2% against the U.S. dollar on Monday.
A weaker Japanese currency tends to boost exporters’ shares as it increases the value of overseas profits in yen terms when repatriated to Japan.
Meanwhile, Japanese shares were also underpinned by the Dow Jones hitting an intraday record high on Friday, as UnitedHealth’s shares jumped after Berkshire Hathaway raised its stake. [.N]
Back in Tokyo, banks fell, sending the banking index 1.45% lower and making it the biggest loser among the Tokyo Stock Exchange’s industry sub-indexes.
Mitsubishi UFJ Financial Group lost 1.96% and Sumitomo Mitsui Financial Group shed 1.78%.
Banks had risen on Friday after a surprisingly strong economic data drove expectations for the Bank of Japan’s interest rate hike.
Chip-related heavyweights weighed on the Nikkei, with Tokyo Electron and Advantest falling 1.3% and 0.09%, respectively.
(Reporting by Junko Fujita; Editing by Sumana Nandy)
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