Japan's Nikkei ends at record high as automakers rise on weaker yen
The Nikkei (.N225), opens new tab rose 0.77% to 43,714.31 and the broader Topix (.TOPX), opens new tab rose 0.43% to 3,120.96. Both closed at record levels for the second straight session.
Japanese shares rallied this month on renewed optimism over the domestic corporate outlook and economic growth 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 (9983.T), opens new tab gained 1.28% to lend the biggest boost to the Nikkei. Chip-testing equipment maker Advantest (6857.T), opens new tab reversed early losses to end 1.48% higher.
Automakers rose, with Toyota Motor (7203.T), opens new tab and Honda Motor (7267.T), opens new tab rising 1.72% and 1.56%, respectively, as the yen lost about 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 (.DJI), opens new tab hitting an intraday record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake.
Back in Tokyo, banks fell, sending the banking index (.IBNKS.T), opens new tab 1.93% lower and making it the biggest loser among the Tokyo Stock Exchange's (TSE) industry sub-indexes.
Mitsubishi UFJ Financial Group (8306.T), opens new tab lost 2.55% and Sumitomo Mitsui Financial Group (8316.T), opens new tab shed 2.3%.
Banks had risen on Friday after a surprisingly strong economic data drove expectations for the Bank of Japan's interest rate hike.
Chip-making equipment maker Tokyo Electron (8035.T), opens new tab lost 2.14% to weigh the most on the Nikkei. Sony Group (6758.T), opens new tab fell 2.54%.
Of more than 1,600 stocks trading on the TSE's prime market, 69% rose, 27% fell and 2% traded flat.
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