Headline indices of the Japan share market closed higher on Monday, 17 December 2018, as investors chased for bottom fishing following a sharp decline late last week. However, market gains capped on rising concerns over global growth and caution ahead of the U.S. Federal Reserve's upcoming interest rate meeting decision due on Wednesday and Bank of Japan's monetary policy decision due on Thursday. Total 17 issues out of 33 issues of the Topix index inclined, with shares in Electric Power & Gas, Land Transportation, Real Estate, and Insurance issues being notable gainers, whereas Oil & Coal Products, Mining, Machinery, and Marine Transportation issues were notable losers. At closing bell, the 225-issue Nikkei index rose 132.05 points, or 0.62%, at 21,506.88. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 2.04 points, or 0.13%, to 1,594.20.

The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with chairman Jerome Powell. The Bank of Japan's monetary policy decision is due on Thursday, followed by a briefing from governor Haruhiko Kuroda.

Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping's opening of the nation's economy to the world with a keynote speech at a conference scheduled for Tuesday. It comes as Beijing's trade war with Washington spurs government advisors and think tanks to urge for urgent reforms in Asia's largest economy.

A partial US government shutdown could start this week if lawmakers and President Trump fail to resolve how much money to allocate for Mr Trump's wall along the Mexican border.

Shares of exporters were mixed. Nissan was down 0.3% ahead of its board meeting to discuss corporate governance and choosing a replacement for former chairman Carlos Ghosn, after his arrest and dismissal. Rival Toyota was up 0.16% but Honda was down 0.13%. Advantest Corp jumped 2.1%, while Tokyo Electron and TDK Corp both gained 1.8%.

Banks were higher, with Mitsubishi UFJ trading up 0.13%, Sumitomo Mitsui Financial up 0.56% and Mizuho Financial up 0.22%.

Among individual stocks, Shares of conglomerate Softbank recovered from earlier losses during the session to gain 0.52% ahead of the anticipated public listing of its mobile unit on Dec. 19.

Discount children's wear operator Nishimatsuya Chain nosedived 8.6% after the company cut its full-year net profit forecast by 42% to 3.33 billion yen for the year ending February due to weak sales of baby clothes.

Office supply company Askul Corp tumbled 6.5% after its pre-tax profit dropped 54.5% on year to 958 million yen for the first half ended November hit by rising delivery costs amid driver shortage.

CURRENCY NEWS: The Japanese yen, which can be a haven during market uncertainty, was changed in the mid-113 yen range against dollar on Monday, largely in line with its levels late last week in New York. The dollar was quoted at 113.40-41 yen compared with 113.34-44 yen in New York and 113.55-56 yen on Friday in Tokyo. The euro, meanwhile, fetched 128.22-23 yen against 128.07-17 yen in New York and 128.94-98 yen in late Friday afternoon trade in Tokyo.