Nikkei's record win streak hits 16 days as large caps draw buyers

TOKYO: Japan's Nikkei share average extended its record winning streak to 16 days on Tuesday, supported by buying of large-cap stocks, while Yaskawa Electric tumbled after disappointing investors with tepid profit forecasts.

The Nikkei, which was down part of the day, rose 0.5 per cent to end at 21,805.17.

The index notched a fresh 21-year high as a victory of Prime Minister Shinzo Abe's coalition in Sunday's election continued to underpin sentiment.

The dollar inched 0.1 per cent higher to 113.55 yen, moving closer to a three-month high of 114.10 against the yen hit after Sunday's general election.

"Hopes for a global economic recovery and US shares' strength are making fund managers generous on Japanese stocks," said Chihiro Ohta, general manager of investment research at SMBC Nikko Securities.

Other traders said that investors are weighing how US monetary policy might change under a new Federal Reserve chair, and what new economic policies the Abe administration might introduce.

US President Donald Trump told reporters on Monday he was "very, very close" to a decision after interviewing five candidates for the post of Fed chair.

Large cap stocks including exporters gained ground, with Toyota Motor Corp rising 0.7 per cent, Murata Manufacturing surging 1.8 per cent and Nintendo climbing 0.9 per cent.

Banking stocks attracted buying, with Mitsubishi UFJ Financial Group up 1.6 per cent and Mizuho Financial Group by 1.2 per cent.

Yaskawa Electric Corp, one of the earliest companies to report first-half earnings, dived 3.6 per cent and was the seventh most-traded stock by turnover.