Stocks extended their winning streak to a sixth session on the Tokyo Stock Exchange on Friday, as buying increased after the recent drops.
The 225-issue Nikkei average climbed 88.46 points, or 0.40 percent, to finish at 22,351.06, the best finish since Nov. 8. It rose 85.58 points Thursday.
The Topix index of all first-section issues closed up 7.98 points, or 0.48 percent, at 1,667.45, after gaining 5.81 points the previous day.
Stocks moved without direction in the morning amid a wait-and-see mood ahead of the closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping to be held on the sidelines of the two-day Group of 20 summit in Buenos Aires from Friday, market sources said.
In afternoon trading, the Nikkei average firmed as mainstay issues, including drugmakers and some automakers, attracted purchases after their recent falls, according to the sources.
Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said that the market’s firmness came as “Chinese stocks moved on a relatively firm note.”
Behind Friday’s rise was “hope for progress” in trade negotiations between the United States and China, an official of an asset management firm said about the Trump-Xi meeting.
The official indicated that futures-led purchases on the back of the speculation that the world’s two largest economies would reach a certain agreement on trade buoyed the market.
Meanwhile, an official of an online brokerage firm warned that the Nikkei average could fall close to 21,000 in the near future if the Trump-Xi talks fall apart.
Rising issues outnumbered falling ones 1,311 to 737 in the TSE’s first section, while 69 issues were unchanged.
Volume rose to 1.819 billion shares from 1.302 billion shares on Thursday.
Among automakers, Honda and Suzuki were upbeat thanks to buybacks, a market source said.
Drugmakers Sumitomo Dainippon Pharma and Shionogi were also buoyant.
Electronic parts supplier Murata Manufacturing closed 2.52 percent higher, as investors took heart from its bullish earnings targets for fiscal 2021 released Thursday, brokers said.
By contrast, Seiko Epson lost 5.70 percent after SMBC Nikko Securities revised down its stock target price for the printer-maker Thursday.
Also on the minus side were clothing retailer Fast Retailing and air-conditioner-maker Daikin.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 110 points to end at 22,350.