Stocks continued to advance on the Tokyo Stock Exchange on Tuesday, buoyed by a weaker yen and a rise in Shanghai stocks, amid a lack of strong trading incentives.
The 225-issue Nikkei average rose 69.86 points, or 0.33 percent, to end at 21,204.28, after surging 249.71 points on Monday.
The Topix index of all first-section issues finished up 8.38 points, or 0.54 percent, at 1,561.32. It gained 20.55 points the previous day.
The market started lower, battered by a stronger yen and uncertainties over the future of the U.S.-China trade friction, fueled by a hawkish statement by U.S. President Donald Trump, brokers said.
In an interview with CNBC on Monday, Trump warned that the United States will impose tariffs worth $300 billion on Chinese imports if Chinese President Xi Jinping does not agree to a bilateral summit with Trump during a Group of 20 summit in Osaka later this month.
The market gradually cut losses and popped into positive territory later in the morning, partly thanks to buying on dips, the yen’s downturn and higher Shanghai stocks, brokers said.
While the market turned sluggish in the afternoon amid the dearth of fresh trading incentives, it remained in the plus side for the remainder of the session.
But the market failed to extend gains, with its upside weighed down by profit taking, brokers said.
Touching on Trump’s statement, Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., said, “Investors refrained from active buying due to concern that (the U.S.-China summit) may not take place.”
An official of a bank-affiliated securities firm noted that market players will be unable to make major moves until after the G20 summit as it is uncertain whether the U.S.-China negotiations to discuss their trade conflict will produce an agreement or end in inconclusively.
Rising issues outnumbered falling ones 1,368 to 676 in the TSE’s first section, while 97 issues were unchanged.
Volume dropped to 1.002 billion shares from Monday’s 1.163 billion shares.
MonotaRO jumped 7.35 percent after the tool shopping website operator announced on Monday a 22.6 percent year-on-year sales growth for May.
Semiconductor-related Disco enjoyed a rise for the third consecutive trading session.
Also on the positive side were Suruga Bank and steelmaker JFE Holdings.
On the other hand, drug producer Hisamitsu fell 0.87 percent in response to a news report that the company’s group operating profit for March-May is believed to have dropped from a year before.
Also on the minus side were railway operator JR Tokai and delicatessen operator Rock Field.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average gained 60 points to end at 21,210.