TOKYO: Japanese equities rose on Monday, boosted by gains in heavyweight technology stocks tracking last week's strong finish on Wall Street, although caution ahead of a US central bank meeting capped gains.
The Nikkei share average rose 1% to 28,711.46 by 0208 GMT, while the broader Topix gained 0.4% to 1,983.37.
Wall Street's S&P 500 hit a record closing high on Friday, despite a strong consumer price print strengthening the case for tighter monetary policy.
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The measured reaction suggested much is already priced in on policy, while some analysts said supply-chain issues behind the price rise were likely easing.
"Investors got a relief from the positive response of the US stock market to the consumer prices data, which is why the Japanese market advanced today," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
"But this trend may not continue after today as investors may turn cautions as the await the outcome of the FOMC (Federal Open Market Committee) meeting later in the week."
Chip-related Tokyo Electron and Advantest gained 0.99% and 2.67%, respectively, while air-conditioning maker Daikin Industries rose 1.67%. Global technology startup investor SoftBank Group gained 1.45%.
Orix Corp rose 2% after local media reported the financial services group has decided to sell software business Yayoi to US private equity firm KKR & Co for about 240 billion yen ($2.12 billion).
Tokyo-based lender Shinsei Bank fell 0.53% after online financial group SBI Holdings succeeded in raising its stake in the bank to 47.77% from about 20% previously.
Tokio Marine Holdings, up 2.94%, was the best performer among the top 30 core Topix names, followed by Murata Manufacturing, rising 2.38%.
Recruit Holdings, down 2.76%, was the worst performer among the top 30 Topix names, followed by Toyota Motor , which lost 1.66%.
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