The Japanese stock market saw modest gains on Monday, continuing the upward trend from the previous session. The benchmark S&P/ASX 200 approached the 38,800 level, influenced by positive signals from Wall Street on Friday, with significant contributions from index heavyweights and technology stocks.
The Nikkei 225 Index rose by 152.10 points, or 0.39%, to reach 38,799.85, after dipping to a low of 38,778.51 earlier in the day. Japanese shares posted strong gains on Friday, bolstering Monday's performance.
Among major players, SoftBank Group climbed nearly 1%, and Fast Retailing, the operator of Uniqlo, also added almost 1%. In the automotive sector, Honda gained nearly 2%, while Toyota increased by over 1%.
In technology, Screen Holdings saw an almost 1% rise, Advantest advanced more than 3%, and Tokyo Electron gained over 1%.
The banking sector showed positive movements with Sumitomo Mitsui Financial edging up 0.5%, while both Mitsubishi UFJ Financial and Mizuho Financial posted gains exceeding 1%.
Leading exporters also performed well: Canon and Mitsubishi Electric increased nearly 1% each, Panasonic gained more than 2%, although Sony fell by 1.5%.
Other notable gainers included IHI and Kawasaki Heavy Industries, which both rose by almost 5%, and Yaskawa Electric and Tokyo Electric Power, which added nearly 4% each. Credit Saison, Murata Manufacturing, TDK, and Daiwa Securities gained more than 3% each, with Takashimaya, Sumco, Mitsubishi Chemical Group, and NEC advancing close to 3% each.
On the downside, Sumitomo Pharma dropped nearly 7%, Chugai Pharmaceutical slid almost 5%, and Toto and ZOZO fell by more than 3% each. Nitori Holdings and Sapporo Holdings lost nearly 3% each.
Economic news revealed that Japan's manufacturing sector continued to contract in August, albeit at a slower rate. The latest survey from Jibun Bank showed a manufacturing PMI score of 49.8, up from 49.1 in July, but still below the 50 mark that indicates expansion.
In the currency market, the U.S. dollar traded in the lower 146 yen range on Monday.
Wall Street saw stocks fluctuate throughout Friday's trading session before ending sharply higher. The Dow closed higher for the fifth time in six sessions, reaching a new record closing high. The Nasdaq surged by 197.19 points, or 1.1%, to 17,713.62, the S&P 500 jumped by 56.44 points, or 1.0%, to 5,648.40, and the Dow climbed by 228.03 points, or 0.6%, to 41,563.08.
In contrast, major European markets ended slightly lower. The French CAC 40 Index edged down by 0.1%, and the U.K.'s FTSE 100 Index and Germany's DAX Index closed just below the unchanged line.
Crude oil prices saw a significant drop on Friday amid reports that OPEC will proceed with a planned output hike from October. West Texas Intermediate crude for October delivery plunged by $2.36, or 3.1%, to $73.55 a barrel.
