Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks extend rally on rosy prospects for U.S.-China trade


Stocks gained further ground Tuesday as hopes grew for progress in the ongoing U.S.-China trade talks.

The Nikkei 225 average advanced 165.07 points, or 0.82 percent, to end at 20,204.04 after jumping 477.01 points Monday.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 5.90 points, or 0.39 percent, higher at 1,518.43. It added 41.37 points Monday.

The market got off to a firmer start amid buying interest swelling in the wake of a continued rise on Wall Street.

Investors also cheered remarks by U.S. Commerce Secretary Wilbur Ross in an interview with CNBC that there is a “very good chance” of Washington and Beijing resolving immediate trade issues, brokers said.

The market accelerated its upswing in the afternoon, backed by the yen’s weakening against the dollar and a rise in Dow Jones futures in off-hours trading, before losing some of the early gains toward the day’s closing.

Media reports that Chinese Vice Premier Liu He made a surprise appearance at Monday’s session of the two-day trade negotiations between U.S. and Chinese officials through Tuesday fueled market expectations for a breakthrough, brokers said.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said Tokyo stocks have rebounded because they were oversold. But he warned that optimism cannot be warranted for a further rally, pointing to lingering uncertainties over the course of the trade talks.

“The wind has shifted” since Federal Reserve Chairman Jerome Powell made a market-friendly comment late last week, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

But the market cannot go much higher unless U.S. stocks exhibit more strength, he noted.

Rising issues outnumbered falling ones 1,304 to 761 in the first section, while 63 issues were unchanged.

Volume increased to 1.552 billion shares from 1.424 billion Monday.

Automakers attracted purchases thanks to the yen’s drop. Toyota rose 1.22 percent, Honda 3.18 percent and Mazda 2.22 percent.

Higher crude oil prices sent oil names higher, among them JXTG, Idemitsu, Showa Shell and Cosmo Energy.

Other major winners included Nintendo and Fanuc.

Meanwhile, domestic demand-oriented issues suffered losses. They included Shiseido and JR East.

Also on the negative side were Fast Retailing and ANA.