(Updates to market close)
By Brigid Riley
TOKYO, Feb 17 (Reuters) - Japan's Nikkei share average
gained in choppy trade on Monday, boosted by financials as the
economy grew more than expected, while automakers dragged on
threats of U.S. tariffs aimed at imported cars.
The Nikkei added 0.1% to close at 39,174.25 after
seesawing between gains and losses for much of the session. The
broader Topix climbed 0.3% to 2,766.9.
Rate-sensitive banks gained 0.9% and shorter-term
Japanese government bond yields marched higher after data showed
Japan's economy expanded an annualised 2.8% in the
October-December quarter.
The latest Gross Domestic Product (GDP) figures appeared to
support the Bank of Japan's plan to keep hiking interest rates
and normalise monetary policy.
Megabanks Sumitomo Mitsui Financial Group and
Mitsubishi UFJ Financial Group ( MUFG ) both added about 2%.
Investors sized up the latest tariff salvo after U.S.
President Donald Trump said on Friday that tariffs on
automobiles would be coming as soon as April 2, without any
further details.
"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.
Toyota Motor ( TM ), down 1.1%, was among major automakers
to decline. The auto sector shed 1.3% to become one
of the worst performers 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 )
climbed to lift the Nasdaq, while the Dow and S&P 500
declined.
U.S. markets will be closed on Monday for the Presidents'
Day holiday.
Among Japan's heavyweight shares, chip-testing equipment
maker Advantest ( ADTTF ), which counts Nvidia ( NVDA ) among its
customers, gained 1.3%, while AI-focused startup investor
SoftBank added 1.8% to boost the Nikkei the most.
Peer Tokyo Electron ( TOELF ) stumbled 1.1%, while Sony Group ( SONY )
rallied 4.1%.
Bridgestone ( BRDCF ) surged to end nearly 6% higher as the
tiremaker announced plans to buy back up to 11% of its shares.