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Japanese Shares End Higher on Global Economic Growth Hopes

TOKYO, May 24 (Reuters) - Japanese shares ended higher on Monday, led by stocks sensitive to global economic growth, as investors cheered upbeat U.S. factory activity data that helped the Dow index end higher in its previous session.

The Nikkei share average edged up 0.17% to close at 28,364.61, while the broader Topix rose 0.44% to 1,913.04.

The Dow Jones Industrial Average rose on Friday after data showed U.S. factory activity gathered speed in early-May amid strong domestic demand.

“Investors had a renewed view on global economic growth after the rise on the Dow (on Friday), which is why shippers and car makers were strong,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

“But this trend may not continue for long as there are many uncertainties ahead of us. If the economy grows fast, then there will be possibilities for tapering, which would push stock markets down.”

The sea transport sector, up 5.31%, gained the most on the main bourse, followed by the airline industry , which rose 2.70%.

Kawasaki Kisen surged 7.64% and Mitsui OSK Lines rose 4.58%. ANA Holdings and Japan Airlines advanced 2.51% and 2.96%, respectively.

Toyota Motor rose 1.05% to touch a record high for the second consecutive session, while Honda Motor and Nissan Motor gained 1.51% and 0.89%, respectively.

Cyclical shares, which are linked to the domestic economy, weighed on the market as Japan continues to see slow progress in its recovery from the COVID-19 pandemic’s damage.

Retailer J.Front Retailing fell 2.02% and Marui Group shed 2.31%, while Isetan Mitsukoshi Holdings lost 1.26%.

Japan expanded a state of emergency to cover the southern island of Okinawa on Friday, while the nation’s second-largest city of Osaka remains under a huge wave of new infections.

(Reporting by Junko Fujita; Editing by Uttaresh.V and Devika Syamnath)

Source: Reuters

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