November 26, 2018 / 6:23 AM / 5 months ago

Japanese shares rise, take heart from Osaka's selection for World Expo

* Nikkei closes up 0.76 percent, brushes 1-week high

* Companies seen benefiting from Osaka’s hosting of Expo rise

* Oil-related stocks retreat amid slumping crude oil prices

By Shinichi Saoshiro

TOKYO, Nov 26 (Reuters) - Japanese shares rose on Monday, taking Wall Street’s losses in stride to touch a one-week high, with an upcoming World Expo in Osaka lifting the market.

The Nikkei share average ended the day up 0.76 percent at 21,812.00, posting its second session of gains. The index briefly rose to 21,838.10, its highest since Nov. 19.

The broader Topix was up 0.2 percent at 1,632.20.

“The domestic equity market has shown some resilience recently, shaking off some of the correlation with Wall Street,” said Takashi Hiroki, chief strategist at Monex Securities.

“Market focus is shifting towards factors linked to domestic demand, with the latest example being Osaka’s hosting of the World Expo.”

The western Japanese city of Osaka won the bid to host the 2025 World Expo at the weekend.

Shares in companies with ties to the Osaka region gained, with the World Expo seen providing a significant economic boost.

Nankai Electric Railway Co, which operates in the Osaka region, gained 3.6 percent. Kamigumi Co, a provider of logistics services in the metropolis, added 3.2 percent.

Obayashi Corp, a construction company with a large presence in Osaka, rose 4.1 percent. The Tokyo Stock Exchange (TSE) construction sub-index climbed 0.63 percent.

Casino-linked companies were lifted amid speculation that hosting the expo would improve Osaka’s chances of gaining an integrated resort with gambling amenities.

Entertainment company Konami Holdings Corp was up 3.7 percent, game machinery maker Oizumi Corp advanced 4.7 percent and equipment manufacturer Japan Cash Machine Co gained 1.6 percent.

Alps Electric surged 4.5 percent after the electronic component maker announced that it will buy back 40 billion yen ($354 million) of its own shares following a planned merger with Alpine Electronics Inc in January 2019.

Daikin Industries Ltd rose 3.1 percent after the air conditioning equipment manufacturer said it plans to buy Austria-based AHT Cooling Systems.

Petroleum product majors Inpex Corp and JXTG Holdings Inc declined 2.4 percent and 2.2 percent, respectively, hurt by crude oil prices slumping to 13-month lows. The TSE oil and coal sub-index fell 1.7 percent. ($1 = 112.91 yen)

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