* Weaker yen underpinned shares in September
* Investors warily watch Japanese political developments
By Lisa Twaronite
TOKYO, Sept 29 (Reuters) - Japan's Nikkei share average ended almost flat on Friday but posted its biggest monthly gain this year as investors rebuilt positions they had scaled back earlier this month on geopolitical concerns.
The Nikkei .N225 was down 0.03 percent at 20,356.28 but posted a solid 3.6 percent rise in September, its first monthly gain in three months.
"Month-end is having an impact here, and I don't think you should be interpreting too much into the market being down today," said Stefan Worrall, director of Japan equity sales at Credit Suisse (SIX: CSGN ) in Tokyo.
"The domestic focus may be adding to some caution at the end of the month, and the end of the quarter," he said.
Upbeat economic data early on Friday underpinned sentiment and kept losses in check.
Japan's core inflation picked up in August, though it remained well below the central bnak's target. Industrial output rose more than expected and demand for labour remained at its strongest in over 40 years in a further sign of solid momentum in the world's third-largest economy. weaker yen also gave Japanese stocks a tailwind in September. The dollar gained 2.5 percent against the yen JPY= in the month.
Investors were wary of political developments ahead of a snap lower house election called by Japanese Prime Minister Shinzo Abe, who expects to consolidate another term for his Liberal Democratic Party-led coalition even if it reduced its lower house dominance to a simple majority.
But a fledgling party led by popular Tokyo governor Yuriko Koike was gaining momentum ahead of the Oct. 22 election, as the biggest opposition Democratic Party said on Thursday that it would step aside to let its candidates run under her conservative, reformist banner. Sushi Co 9828.T jumped 4.0 percent. The owner of the sushi restaurant chain will buy a one-third stake in bigger rival Sushiro Global Holdings Ltd 3563.T from private equity firm Permira PERM.UL , a person with direct knowledge of the deal said. Sushiro shares rose 4.0 percent. Corp's 6502.T shares gained 2.9 percent, after it said on Thursday that it had signed an $18 billion deal to sell its chip unit to a consortium led by Bain Capital LP, overcoming a key hurdle as it scrambles for funds to stave off a potential delisting. of Koito Manufacturing Co 7276.T fell 6.2 percent, after the company trimmed its full-year group outlook.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.