Japanese shares edged up on Monday, taking Wall Street losses in stride while stocks seen benefiting from an upcoming World Expo advanced. The Nikkei share average added 0.6 per cent to 21,780.72, headed for its second session of gains. The broader Topix was up 0.15 per cent at 1,631.34.
“The domestic equity market has shown some resilience recently, shaking off some of the correlation with Wall Street,” said Takashi Hiroki, chief strategist at Monex Securities.
“Market focus is shifting towards factors linked to domestic demand, with the latest example being Osaka's hosting of the World Expo.”
The western Japanese city of Osaka won the bid to host the 2025 World Expo at the weekend. Shares of companies with ties to the Osaka region gained, with the World Expo seen providing a significant economic boost.
Keihan Holdings, which operates railways in the Osaka region, gained 0.65 per cent. Fellow railway operator Nankai Electric Railway Co advanced 3.55 per cent. Kamigumi Co, a provider of logistics services in the region, added 3 per cent.
Construction companies based in Western Japan also rose, with Zenitaka Corp up 1.4 per cent and Okumura Corp advancing 1.8 per cent. The Tokyo Stock Exchange (TSE) construction sub-index climbed 0.7 per cent.
Alps Electric climbed 5.4 per cent after the electronic component maker announced that it will buy back ¥40 billion ($354 million) of its own shares following a planned merger with Alpine Electronics Inc in January 2019.
Daikin Industries Ltd rose 2 per cent after the air conditioning equipment maker said it plans to buy Austria-based AHT Cooling Systems. Petroleum product majors Inpex Corp and JXTG Holdings Inc declined 3.5 per cent and 2.8 per cent, respectively, hurt by crude oil prices slumping to 13-month lows. The TSE oil and coal sub-index fell 2.2 per cent.