Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks extend gains on brisk U.S. equities

JIJI

Stocks extended their gains Tuesday, aided by an overnight rise on Wall Street.

The Nikkei 225 average advanced 114.06 points, or 0.55 percent, to end at 20,677.22. On Monday, the key market gauge jumped 144.35 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 12.44 points, or 0.83 percent, higher at 1,506.77 after rising 9.04 points Monday.

Both indexes finished higher for the third straight session.

The market got off to a firmer start after U.S. equities performed well Monday thanks to an easing of trade tensions between the United States and China.

The Dow Jones Industrial Average surged about 250 points on the U.S. government’s decision to extend for three months the period in which major Chinese telecommunications equipment maker Huawei Technologies, at the center of the bilateral trade dispute, is allowed to deal with U.S. companies in some areas.

After the rosy start, Tokyo stocks trimmed some of their gains, but the market’s downside was supported by the firmness of Dow futures in off-hours trading, brokers said.

Investors refrained from active trading in the afternoon, ahead of a speech by U.S. Federal Reserve Chairman Jerome Powell at a high-profile annual financial symposium in Jackson Hole, Wyoming, on Friday.

The market lacked power to roar ahead as concerns over the trade row between the world’s two largest economies persist, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., noted.

Despite Washington’s decision on the three-month extension for Huawei, “there is no change” in the U.S.-China conflict, he said, pointing out that 46 companies linked to the Chinese firm were added to Washington’s trade ban list.

Rising issues outnumbered falling ones 1,729 to 347 on the first section, while 73 issues were unchanged.

Volume rose to 924 million shares from 904 million Monday.

Tokyo Electron, Screen and other semiconductor-related issues rose on the back of a jump in U.S. chipmaker Nvidia on the Nasdaq stock market Monday.

Cosmetics makers were hunted after U.S. peer Estee Lauder surged in New York overnight. Shiseido gained 2.45 percent and Kose 1.97 percent.

Kushikatsu Tanaka was up 4.27 percent after the restaurant operator announced a plan to buy back its own shares.

Among losers were Japan Tobacco and retailer FamilyMart Uny.

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