This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks ended higher Monday as concerns over surging inflation in the United States receded somewhat after the country's consumer price index data for November landed within market expectations.
The 225-issue Nikkei Stock Average ended up 202.72 points, or 0.71 percent, from Friday at 28,640.49. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 2.65 points, or 0.13 percent, higher at 1,978.13.
Gainers were led by marine transportation, insurance, and consumer credit issues.
The U.S. dollar was firm in the upper 113 yen range in Tokyo as some investors bought the unit on expectations the dollar will rise against the yen after a two-day U.S. Federal Reserve policy meeting starting Tuesday, dealers said.
At 5 p.m., the dollar fetched 113.54-56 yen compared with 113.34-44 yen in New York and 113.58-59 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.1290-1292 and 128.19-23 yen against $1.1311-1321 and 128.28-38 yen in New York and $1.1293-1294 and 128.27-31 yen in Tokyo late Friday afternoon.
The yield on the benchmark 10-year Japanese government bond dipped 0.005 percentage point from Friday's close to 0.045 percent, tracking a fall in the U.S. Treasury yield late last week.
Stocks tracked gains on Wall Street late last week despite a 6.8 percent rise in the U.S. consumer price index for the previous month compared to a year earlier, the sharpest gain in over 39 years.
"Although the inflation rate in the United States remained high, it was within the market consensus and raised hopes that inflation may have hit a peak and begin to settle down," said Koichi Fujishiro, a senior economist at the Dai-ichi Life Research Institute.
But the market remained top-heavy in subdued trading throughout the day, moving in a narrow range within positive territory as investors refrained from chasing the upside ahead of the Fed meeting as well as a Bank of Japan policy meeting later this week.
The U.S. inflation data has led investors to believe that the U.S. central bank will not be overly hawkish, while market participants now focus on the pace of tapering as well as the number and timing of rate hikes for the upcoming year, Fujishiro added.
Meanwhile, the market showed limited reaction to a Bank of Japan Tankan business survey released shortly before the start of regular trading, which showed business confidence among major Japanese manufacturers remained unchanged in December from three months earlier, brokers said.
On the First Section, declining issues outnumbered advancers 1,144 to 918, while 121 ended unchanged.
High-tech issues were higher following gains in their U.S. counterparts on the technology-heavy Nasdaq index Friday.
Advantest added 240 yen, or 2.4 percent, to 10,370 yen, Murata Manufacturing climbed 135 yen, or 1.5 percent, to 8,905 yen, and Screen Holdings was up 150 yen, or 1.3 percent, to 11,850 yen.
Bucking the upward trend, Toyota Motor sank 50.0 yen, or 2.4 percent, to 2,002.0 yen, after the automaker said Friday it would partially suspend operations of more domestic lines in December due to supply chain disruptions in Southeast Asia.
Volume on the main section fell to 955.79 million shares from Friday's 1,114.09 million shares.
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