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Roundup: Nikkei gains 0.65 pct on Wall Street's rally despite poor factory output data

Xinhua, March 30, 2015 Adjust font size:

The Nikkei stock index gained 0.65 percent Monday as Wall Street's rally on Friday lifted the market mood enough for it to shrug off geopolitical concerns over the Middle East and disappointing factory data here.

The Nikkei 225 index added 25.77 points to finish at 19,411.40, while the broader Topix index of all first-section issues gained 0. 32 percent, or 4.99 points, to end at 1,557.77.

Wall Street snapping a four-day losing streak at the end of last week helped encourage buying sentiment, despite the market getting off to a shaky start following the government releasing data here showing that industrial production had slumped.

The latest figures showed that industrial production dropped 3. 4 percent in February, far more than median analysts' expectations, following a 3.7 percent rise a month earlier.

Coupled with this, brokers here said geopolitical concerns about the possibility of Saudi Arabia and Egypt launching a ground assault on Yemen, also weighed on the market, to an extent, although hopes for robust corporate earnings and higher wages here- - meaning an improved economic outlook -- underpinned the market.

"The industrial production figures are having a negative effect while concern about geopolitical risks remain with uncertainty in the Middle East. But investors are buying on dips as there's now a risk in not owning Japanese shares," said Soichiro Monji, chief strategist at Daiwa SB Investments Ltd.

With the U.S. dollar changing hands at 119.19 yen, compared to 119.14 yen in New York on Friday, exporters here gained, with Sony gaining 0.4 percent to 3,210 yen and Nissan Motor moving up 0.7 percent to close at 1,225 yen.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of apparel stores, jumped 2.6 percent to 47,455 yen and food and drink maker Kikkoman jumped 5.2 percent to end at 3,920 yen.

Industrial robotics maker Fanuc also closed in positive territory, advancing 1.12 percent to finish the day at 26,475 yen.

But oil and energy-eater issues lost ground Monday, with exploration giant Inpex sinking 2.5 percent to 1,327 yen and JX Holdings losing 2.8 percent to close at 463 yen.

Trading volume on Monday dropped to 2.10 billion shares on the Tokyo Exchange's First Section, down from Friday's volume of 2.56 billion shares, with advancing issues beating declining ones by 979 to 789. Endi