TOKYO: Tokyo stocks have closed 0.15 per cent higher with exporters supported by a weaker yen, while investors weighed China’s interest rate cut at the weekend.
The Nikkei 225 index at the Tokyo Stock Exchange added 28.94 points to end at 18,826.88 on Monday , while the Topix index of all first-section issues edged up 0.07 per cent, or 1.12 points, to 1,524.97.
“Tokyo markets are higher today because of the weaker yen and after US shares reached a new record,” said Juichi Wako, a Nomura Holdings senior strategist.
“However, the sense of overheating in the short-term is getting stronger. Gains were too fast and we need to see it correct.”
The Nikkei opened strongly as Wall Street hovered near record highs.
But the Japanese market lost some gains to profit taking, while investors cast an eye on the latest central bank move to ease monetary policy in a bid to kickstart faltering growth.
On Saturday, the People’s Bank of China cut interest rates by 25 basis points, citing “historically low inflation” among the factors behind its decision.
The move is the latest by authorities aimed at helping the world’s number-two economy regain its lustre after it grew in 2014 at its slowest pace since 1990.
This month the PBoC also cut the percentage of funds banks must hold in reserve, known as the reserve requirement ratio, to try to boost lending.
“China is clearly slowing down, you don’t cut rates twice in three months if things are going stunningly well,” Mark Lister, head of private wealth research at Craigs Investment Partners, told Bloomberg News.