The Nikkei stock index finished above the 60,000-point line for the first time on Monday, propelled by heavyweight technology shares and hopes for a breakthrough in the Middle East conflict.
The 225-issue Nikkei Stock Average ended up 821.18 points, or 1.38 percent, from Friday at 60,537.36. The broader Topix index finished 18.69 points, or 0.50 percent, higher at 3,735.28.
On the top-tier Prime Market, the main gainers were electric appliance, nonferrous metal and machinery issues.
The U.S. dollar mostly traded in the lower 159 yen range in Tokyo, after strengthening to the upper 159 yen level, as a flight-to-safety mood eased.
The Nikkei stock index surpassed the 60,000 line soon after the market opened, on rises in heavyweight technology shares tracking gains by U.S. counterparts late last week. But the index then briefly turned negative on profit-taking.
“As many investors are aware 60,000 is a psychologically important level, profit-taking took place after topping the line,” said Maki Sawada, strategist in the Investment Content Department of Nomura Securities Co.
Meanwhile, a report that Iran has given the United States a new proposal to reopen the Strait of Hormuz lifted the Nikkei again to a fresh intraday high at 60,903.95, and also elevated the Topix index into positive territory.
“A new proposal from Iran led to a notable recovery in the recently-weak Topix index today,” said Shota Sando, equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.
Robust earnings results of Japanese companies also supported the sentiment, while gains were partly trimmed toward the end of the day’s trading on a wait-and-see mood ahead of the release of heavyweight Advantest Corp.’s earnings results after the close of the market.
© KYODO
