TOKYO: Japanese shares closed higher on Monday after US jobs data eased concerns over an early tapering from the Federal Reserve, but heavy profit-taking capped gains amid caution before US inflation readings due later this week.

The Nikkei share average edged up 0.27% to close at 29,019.24, after rising as high as 1% to reach a nearly four-week high earlier in the session.

The broader Topix reversed course to tick up 0.08% to 1,960.85.

Shippers benefited from global bullish sentiment, rising 2.55% to a 10-year peak, with Nippon Yusen rising 2.37%, Kawasaki Kisen jumping 5.51% and Mitsui OSK Lines adding 2.26%. However, profit-taking sank steelmakers, which had risen sharply this year on signs of a global recovery.

The steelmaker subindex dropped 4.71%, with Nippon Steel losing 5.74%, JFE Holdings shedding 7.2% and Kobe Steel falling 5.2%.

Hospitality shares, which had gained on Japan’s accelerated vaccine roll-outs, also lost traction, with department store operator Takashimaya dropping 1.84% and Isetan Mitsukoshi edging down 1.27%.

However, investors remain cautious as they look for more clues on possible tapering from the US consumer price index (CPI) report this week, said Takatoshi Itoshima, strategist at Pictet Asset Management.