Tokyo: Nikkei rises to 1-month high driven by Wall Street strength

[TOKYO] Japan's Nikkei rose to a 1-month high on Tuesday (Dec 28), led by technology heavyweights, after strong retail sales data helped Wall Street close higher overnight.

Also boosting risk sentiment, data showed a surge in Japan's factory output in November as production in the auto sector benefited from a recovery in global parts supplies.

The Nikkei share average rose 1.37 per cent to close at 29,069.16, its highest since Nov 25. The broader Topix advanced 1.37 per cent to 2,005.02.

The S&P 500 index ended at a record high in its fourth straight session of gains, as an e-commerce-powered boom in retail sales underscored economic strength and eased worries from Omicron-driven flight cancellations that hit travel stocks.

"Sentiment is strong with gains in US equities last night. The Japanese market will keep the momentum if the US market remains strong," said Takatoshi Itoshima, a strategist at Pictet Asset Management.

"But most participants are short-term investors, with many long-term investors away for the holiday season, such investors may sell shares to gain profits if the market keeps rising."

Technology stocks led gains, with chip-making equipment maker Tokyo Electron rising 1.81 per cent, air-conditioner maker Daikin Industries climbing 2.7 per cent and robot maker Fanuc gaining 2.47 per cent.

Game maker Sony Group led the Topix gains with a 2.3 per cent jump.

Precision makers gained the most among the 33 industry sub-indexes on the bourse, with optical glass maker Hoya rising 1.75 per cent and medical equipment and camera maker Olympus jumping 4.32 per cent.

Kewpie advanced 2.62 per cent after the mayonnaise maker raised its forecast for annual profit and dividend.

Casual clothing retailer Shimamura rose 4.05 per cent after posting a 25 per cent jump in its 9-month net profit.

REUTERS