Japan has the third-largest economy in the world, but the coronavirus pandemic created a lot of challenges for the economy. It was a positive day for Japanese shares, thanks to a positive attitude regarding economic recovery from the coronavirus pandemic prompted fresh buying in materials, travel-related as well as other cheap cyclical stocks.
It is worth noting that, Nikkei 225 share average gained 0.46% to end its trading day at 30,156.03. In the meantime, the broader Topix added 0.49% to 1,938.35.
However, mainland Chinese stocks fell on Monday. Importantly, Chinese stocks led losses among the region’s major markets. The Shanghai Composite dropped 1.45% to 3,642.44. At the same time, the Shenzhen component fell 3.072% to 15,336.05.
Moreover, Hong Kong’s Hang Seng index dropped 0.89%, as of its final hour of trading.
In South Korea, Kospi fell 0.9% to finish its trading day at 3,079.75.
Interestingly, the S&P/ASX 200 in Australia declined 0.19% to close at 6,780.90.
People should keep in mind that, China kept the one-year loan prime rate (LPR) unchanged at 3.85%. As a reminder, the five-year LPR was also kept steady at 4.65%. People should keep in mind that, the loan prime rate is a lending reference rate set monthly by 18 banks.
As stated above, Japanese shares strengthened their positions on Monday.
Interestingly, investors scooped up cyclical shares with cheap valuation including Yokohama Rubber and Sumitomo Metal, which gained 8.9% and 7.2%, respectively.
Moreover, travel-related shares advanced as investors bet on a continued recovery in the global economy. It makes sense as governments are working hard to solve problems related to coronavirus vaccines.
It is worth noting that, airliner ANA Holdings notched up 5.8%, while rival Japan Airlines gained 5.7%. Moreover, department store operators also bounced back, with J.Front Retailing up 2.4% and Takashimaya trading 1.6% higher. Also, chip-related shares continued to do well, with Tokyo Electron gaining 6.3%.
The post Japanese Shares Saw Gains on the Day appeared first on FinanceBrokerage.
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