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Nikkei rebounds on strong China stocks, halt to yen rise

JIJI

The benchmark Nikkei average edged up on the Tokyo Stock Exchange on Tuesday, helped by brisk Chinese stocks and a halt to the yen’s strengthening against the dollar.

The 225-issue Nikkei average rose 20.73 points, or 0.09 percent, to end at 22,219.73, after losing 71.38 points on Monday.

But the Topix index of all first-section issues closed down 6.73 points, or 0.4 percent, at 1,685.42. It gave up 5.38 points the previous day.

The yen’s firming against the dollar following U.S. President Donald Trump’s remarks on Monday criticizing the Federal Reserve for raising interest rates battered investor sentiment, keeping both indexes in negative territory in the morning, brokers said.

In the afternoon, the Nikkei average popped into positive territory and the Topix cut earlier losses, helped by the yen’s slight downturn and a rise in Chinese stocks, brokers said.

Active trading was held in check ahead of reported subcabinet-level U.S.-China trade talks in the United States from Wednesday and the two countries’ expected introduction of tariffs on $16 billion worth of each other’s imports later this week, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

Investor attention was also paid to a three-day central bank symposium in Jackson Hole, Wyoming, from Thursday, Fujii added.

“Trading was thin, like yesterday, amid a summer vacation mood and a dearth of major trading incentives,” he also said.

Falling issues outnumbered rising ones 1,455 to 563 in the TSE’s first section, while 85 issues were unchanged.

Volume increased to 1,067 million shares from 983 million shares on Monday.

Mobile phone carriers SoftBank Group, NTT Docomo and KDDI were downbeat after Chief Cabinet Secretary Yoshihide Suga said in a speech on Tuesday that mobile phone bills can be cut by some 40 percent.

Financial issues met with selling following a decline in U.S. long-term interest rates on Monday. They included megabank groups Mitsubishi UFJ and Sumitomo Mitsui, as well as insurers Dai-ichi Life and Tokio Marine.

Otsuka Kagu lost 5.97 percent after it turned out on Monday that Brandes Investment Partners LP has sold all of its 6.41 percent stake in the struggling Japanese furniture retailer.

Among other major losers were Sumitomo Metal Mining and technology giant Sony.

Meanwhile, Nintendo rose 0.9 percent after Jefferies (Japan) Ltd. revised up its stock target price for the game maker on Monday.

Also higher were Tokai Carbon and clothing retailer Fast Retailing.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average advanced 60 points to end at 22,220.