Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks extend rally on brisk U.S. equities

JIJI

Stocks rose further on the Tokyo Stock Exchange on Wednesday, tracking an overnight advance in U.S. equities.

The 225-issue Nikkei average gained 224.62 points, or 1.02 percent, to 22,177.02, its first finish above 22,000 since Nov. 12. It climbed 140.40 points Tuesday.

The Topix index of all first-section issues closed up 9.50 points, or 0.58 percent, at 1,653.66, after advancing 11.96 points the previous day.

The key market gauges extended their winning streaks to a fourth session, thanks to the yen’s weakening against the dollar and a solid performance of Chinese stocks in addition to higher U.S. stocks, market sources said.

“A sense of relief spread” among investors thanks to higher U.S. share prices, an official of an asset management firm said.

Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., indicated that the Tokyo market attracted buybacks after the recent sharp falls.

Wednesday’s rise reflected growing hopes for a successful summit meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week, Fujii said.

Such expectations were fueled by remarks by U.S. National Economic Council Director Larry Kudlow showing an optimistic view about the closely watched summit, Fujii said.

Kudlow said Tuesday that Trump sees a good possibility that the United States and China can reach a trade deal at the summit.

On the TSE’s first section, rising issues far outnumbered falling ones 1,416 to 612, while 85 issues were unchanged.

Volume increased to 1.388 billion shares from 1.325 billion shares Tuesday.

Kao Corp. closed 4.79 percent higher after the cosmetics maker announced Tuesday its development of a new technology to make a skin-like substance by spraying ultrathin fibers onto consumers’ skin, brokers said.

Messaging app provider Line Corp. was also upbeat after announcing Tuesday its plan to offer online banking services in partnership with Mizuho Financial Group Inc.

Other major winners included Sumitomo Dainippon Pharma Co. and clothing retailer Fast Retailing Co.

By contrast, Toyota Motor Corp., Honda Motor Co. and Subaru Corp. met with selling on a news report that Trump could impose tariffs on imported vehicles as early as next week, brokers said.

Also on the minus side were optical equipment-maker Olympus Corp. and convenience store operator FamilyMart Uny Holdings Co.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 230 points to 22,230.