Nikkei rises on financials and exporters; builders off lows

TOKYO: Japanese stocks scored their biggest rise in over a month on Monday with financials and exporters in hot demand, while construction shares bounced after sliding on news that prosecutors had raided the headquarters of at least two builders for alleged antitrust violations.

The Nikkei share average finished 1.55 per cent higher at 22,901.77, its biggest gain since Nov. 7 and its highest closing level in a week.

Sentiment was boosted by a strong performance on Wall Street on Friday on expectations US lawmakers will pass a long-awaited tax bill.

The banking and insurance sectors were among top sectoral performers, soaring 2.37 per cent and 2.80 per cent, respectively.

Mitsubishi UFJ Financial Group jumped 2.89 per cent, Sumitomo Mitsui Financial Group advanced 1.54 per cent and Dai-ichi Life Holdings rose 2.84 per cent.

Exporters also gained ground, with Toyota Motor up 2.81 per cent, Honda Motor rising 1.27 per cent and TDK Corp advancing 2.55 per cent.

The construction sector edged up 0.12 per cent, erasing earlier losses driven by news Tokyo prosecutors had raided the headquarters of at least two of Japan's biggest construction firms for alleged antitrust violations linked to $80 billion worth of magnetic levitation (maglev) train line projects.

Shimizu Corp and Kajima Corp were raided early on Monday morning, spokesmen for the two companies separately said, sending their stocks down 2.44 per cent and 2.68 per cent, respectively.

The broader Topix advanced 1.36 per cent to 1,817.90. (Reporting by Lisa Twaronite and Ayai Tomisawa; Editing by Jacqueline Wong & Shri Navaratnam)