INSUBCONTINENT EXCLUSIVE:
TOKYO: Japanese stocks rose modestly on Monday on relief that US-led strikes on Syria appeared to be a one-off event though lingering
concerns about a trade war had investors flocking to defensive shares.
"Assuming that it was a one-off attack and there will be no
additional strikes, I think Tokyo market reaction will be limited
It was within expectations and was already priced in the market," said from Itsuo Toshima, market analyst at Toshima Associates.
Nikkei
rose 0.26 per cent to 21,836 while the broader Topix gained 0.40 per cent to 1,736.22.
Defensive and domestic demand-oriented shares led the
gains as investors are not fully convinced that a trade war can be avoided in the wake of the US-China tariff standoff, and as Japanese
Prime Minister Shinzo Abe sets off to Washington this week to discuss trade and North Korea.
Drugmakers rose 2.1 per cent while retailers
Food companies were up 1.0 per cent.
On the other hand, non-ferrous metal companies both fell 0.3 per cent and steelmakers dipped 0.1 per
cent while shippers dropped 0.2 per cent.
The Nikkei volatility index fell to a 10-week low, with investors showing little signs of concerns
over the plunge in Abe's ratings.
Many investors still think Abe is likely to survive although some now question whether he can win his
third term as the head of the main ruling party in September, and thereby remain in office.
