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TOKYO: Japanese shares inched higher on Monday as optimism around the passage of a massive US stimulus package boosted cyclical stocks, although declines in SoftBank Group and other tech companies limited gains.

The Nikkei share average edged up 0.17% to close at 29,766.97, while the broader Topix gained 0.91% to close at 1,968.73,

Japanese transport and materials stocks advanced.

Ship builder Mitsui E&S Holdings jumped 7.78%, while shipping firms Kawasaki Kisen and Nippon Yusen rose 7.02% and 4.74%, respectively.

ANA Holdings jumped 4.43% and Japan Airlines advanced 3.79%.

E-commerce firm Rakuten surged 24% after announcing a capital tie-up with postal giant Japan Post Holdings, making it the biggest gainer in the Nikkei. Japan Post gained 2.49%.

Japan’s tech shares fell tracking Nasdaq’s decline on Friday, with Nikkei heavyweight SoftBank Group down 2.49%.

Tokyo Electron lost 1.56% and Advantest fell 1.26%.

Amid rising US bond yields, Japan’s largest banks gained the most among the top 30 core Topix names, with Mitsubishi UFJ Financial Group up 4.12%, followed by Sumitomo Mitsui Financial Group, which gained 3.55%.

The underperformers among the Topix 30 were SoftBank Group, followed by Nidec losing 2.24%.

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