TOKYO, Feb 17 (Reuters) - Japan's Nikkei share average edged higher in choppy trade on Monday, boosted by financial shares as gross domestic production rose more than expected while automakers dragged following Friday's headlines of possible U.S. tariffs aimed at imported cars.
The Nikkei .N225 was nearly flat by the midday break, up 0.04% at 39,164.87. The broader Topix .TOPX rose 0.3% to sit at 2,766.47.
Japan's economy expanded an annualised 2.8% in the October-December quarter, government data showed on Monday, backed by strong business spending and beating analyst forecasts.
Rate-sensitive banks .IBNKS.T gained 0.9% and shorter-term Japanese government bond yields marched higher after the data, which likely supports the Bank of Japan's plan to keep hiking interest rates and normalises monetary policy.
Megabanks Sumitomo Mitsui Financial Group 8316.T and Mitsubishi UFJ Financial Group 8306.T added 2.1% and 1.5%, respectively.
Elsewhere in the financial shares, insurance firm Dai-ichi Life Holdings 8750.T jumped 5.2%.
Toyota Motor 7203.T, down 2%, was among major automakers to slide after U.S. President Donald Trump said on Friday that tariffs on automobiles would be coming as soon as April 2 but gave no further details, keeping investors on edge.
"There are a lot of uncertainties, ...leaving just a vague impression that tariffs will be increased," said Kazuo Kamitani, an equities strategist at Nomura Securities.
The auto sector .ITEQP.T shed 1.8% to become the second worst performer among the Tokyo Stock Exchange's 33 industry sectors.
Wall Street offered Japanese shares little direction, with U.S. stocks ending mixed on Friday. AI darling Nvidia NVDA.O climbed to lift the Nasdaq while both the Dow and S&P 500 declined..N
U.S. markets will be closed on Monday for Presidents' Day.
Among Japan's heavyweight shares, chip-testing equipment maker Advantest 6857.T, which counts Nvidia among its customers, gained 2.6% to give the Nikkei the biggest lift.
Peer Tokyo Electron 8035.T stumbled 1.1% along with Uniqlo parent firm Fast Retailing 9983.T, down 0.2%, while Sony Group Corp 6758.T was up 2.7%.
Related Articles
Caution on Short-Term Downside Risks for U.S. Stock Market
TradingKey - Last Friday, the U.S. Labor Department sharply revised downward its May and June nonfarm payroll figures by a combined 258,000 jobs, a reduction exceeding 90%. Meanwhile, July’s payroll increase came in at just 73,000, falling short of the 100,000 forecast.
Hims & Hers: A Game-Changer in Telehealth or Just Another Fad?
Explore the exciting world of Hims & Hers (NYSE: HIMS) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
From Ozempic to Wegovy: Growth and Risks Behind Novo Nordisk’s Q2 Performance
TradingKey - Novo Nordisk achieved revenue of $11.67 billion in Q2 of the 2025 fiscal year, a 19% increase year-over-year, but it fell short of market expectations. Growth was primarily driven by strong performance in obesity care and rare diseases.
MP Materials 2Q25 Earnings Preview: The New Stock Darling?
TradingKey - MP Materials will release its earnings for the second quarter of the fiscal 2025 on August 7th after the bell.
Bank of England August Rate Decision Preview: Pound Likely to Enter a Fluctuation Phase
TradingKey - On 7 August 2025, the Bank of England (BoE) will announce its policy interest rate decision. The prevailing market view suggests a high likelihood of a 25-basis-point rate cut, lowering the benchmark rate from the current 4.25% to 4%.
