By Hideyuki Sano
TOKYO, July 6 (Reuters) - Japanese shares rose on Monday as signs of an economic rebound in China boosted shippers and steelmakers, while worries over a spike in COVID-19 cases in some U.S. states were offset by prospects of more policy support to sustain the recovery.
Cyclical stocks led the gains as Chinese shares jumped more than 5% to a five-year high on hopes of a recovery in the world's second-largest economy. .SS
Nissan Motor 7201.T gained 5.2% after the carmaker said its sales in China, the world's biggest auto market, rose last month. those, value-oriented shares .TOPXV outperformed by rising 1.9%, compared to a 1.3% gain in growth shares .TOPXG .
SoftBank Group 9984.T rose 2.4% to a 14-month high, helped by hopes of share buybacks and unwinding of positions by short-sellers.
Still, trade volume was lacklustre overall, pointing to a lack of strong conviction among investors on the strength of the economy hobbled by the COVID-19 pandemic.
The turnover on the Tokyo Stock Exchange's main board was only 1.801 trillion yen, not far from the lowest level for this year and about 20% below the average.
A spike in virus cases in some U.S. states is seen as a threat to the global economic recovery, even though investors are sticking to hopes that a gradual recovery could continue with steady policy support.
"The market is looking to see if selective lockdowns implemented by some states will curtail infections within a week or two," said Nobuhiko Kuramochi, market economist at Mizuho Securities.
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