The Nikkei 225 jumped 1.17% to close at 38,902 while the broader Topix index gained 1.19% to 2,711 on Monday (20/1), recovering losses from last week as investors prepared for Donald Trump's inauguration and braced for the impact of his potential policies. Domestic data revealed a surprise 3.4% month-on-month rise in Japanese machinery orders in November, defying market expectations for a 0.4% decline and marking the strongest growth in nine months. Looking ahead, the market is focused on the Bank of Japan's upcoming monetary policy decision, especially after hints from central bank officials about a potential interest rate hike at this week's meeting. Notable gains were seen in major index components, including Lasertec (+2.9%), Mitsubishi UFJ (+2.6%), and Toyota Motor (+2.9%). In corporate news, Daiichi Sankyo shares jumped 8.2% following US approval of a breast cancer drug developed in partnership with AstraZeneca.(AL)

Source: Trading Academics