Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks soar on hopes for progress in U.S.-China talks

JIJI

Stocks turned sharply higher on the Tokyo Stock Exchange Wednesday, with investors hunting a wide range of issues amid rekindled hopes for progress in trade talks between the United States and China.

The 225-issue Nikkei average jumped 361.16 points, or 1.72 percent, to end at 21,333.87, the highest finish since May 20. The key price indicator plunged 151.29 points Tuesday.

The Topix index of all first-section issues finished up 26.60 points, or 1.74 percent, at 1,555.27, after shedding 11.07 points the previous day.

The market spurted from the outset of the Wednesday session, in the wake of a powerful advance on Wall Street on Tuesday triggered by U.S. President Donald Trump’s Twitter feed clarifying that he will meet with his Chinese counterpart, Xi Jinping, on the sidelines of the Group of 20 summit in Osaka on June 28-29, brokers said.

After a pile of initial buy orders were executed, however, stocks grew top-heavy, forcing both the Nikkei and Topix indexes to move narrowly for the rest of the day’s trading.

Trump’s Twitter remarks swept away fears that the U.S. and Chinese leaders would not hold their talks in the western Japan city.

“Now investors expect the two leading economies to resume their stalled trade talks,” said Yoshihiko Tabei, chief analyst at Naito Securities Co.

“If Trump and Xi make a deal, the market would respond positively,” an official at a bank-affiliated brokerage firm said.

On the market’s failure to extend gains after the initial rally, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., said participants “retreated to the sidelines to wait for the outcome” of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting ending later on Wednesday.

Rising issues overwhelmed falling ones 1,910 to 187 in the TSE’s first section, while 47 issues were unchanged.

Volume increased to 1,167 million shares from Tuesday’s 1,023 million shares.

Tokyo Electron, Advantest and other semiconductor-related issues went up following brisk performance of the U.S. chip sector in New York Tuesday.

Nomura surged 10.54 percent, after the brokerage giant announced on Tuesday a plan to repurchase own stocks.

Among other winners were textile maker Nisshinbo Holdings and trading house Marubeni.

By contrast, Sushiro Global Holdings tumbled 10.34 percent on its announcement the previous day of the rupture of merger negotiations with Genki Sushi, another conveyor-belt sushi restaurant chain.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 360 points to end at 21,270.