Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks surge as China-U.S. trade concerns wane

JIJI

Tokyo stocks soared Thursday amid receding concerns over the U.S.-China trade talks, pushing the benchmark Nikkei average above 21,000 for the first time in a month.

The 225-issue Nikkei average closed up 436.80 points, or 2.12 percent, at 21,085.94, after advancing 23.98 points Wednesday. The key market gauge last finished above the threshold on Aug. 2.

The Topix index of all issues on the Tokyo Stock Exchange’s first section jumped 27.65 points, or 1.84 percent, to end at 1,534.46, after sagging 3.98 points the previous day.

The market spurted right after the opening bell, in the wake of a Wall Street rebound induced by the Hong Kong government’s complete withdrawal of a controversial extradition bill and the passage of a bill to prevent a no-deal Brexit by Britain’s House of Commons, which also killed Prime Minister Boris Johnson’s bid for a snap election.

Tokyo stocks went further up in the midmorning on buying by investors cheering Beijing’s announcement that U.S.-China ministerial trade talks will be resumed in Washington early next month, allowing the Nikkei to expand gains by more than 500 points, brokers said.

Although the market lost steam later, it remained buoyant until the day’s closing.

The dollar’s firming against the yen “served as a tailwind” for stocks, Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said.

The launch of a new coalition government in Italy also made investors turn less risk-averse, an asset management firm official said.

Meanwhile, Yutaka Miura, senior technical analyst at Mizuho Securities Co., pointed out that some players remained skeptical about the rescheduled U.S.-China trade talks, initially set for this month, producing fruit.

Rising issues outnumbered falling ones 1,966 to 157 in the first section, while 27 issues were unchanged.

Volume increased to 1.348 billion shares from Wednesday’s 900 million shares.

Export-oriented issues rose on the back of a break in the yen’s appreciation vis-a-vis the dollar, with automaker Honda scaling 2.99 percent and camera-maker Canon 1.59 percent.

Technologies were hunted thanks to their U.S. peers’ brisk performance Wednesday. Noticeable gainers included electronic parts makers Murata Manufacturing Co., up 4.66 percent, Rohm Co., up 4.65 percent, and TDK Corp., up 4.90 percent.

Mitsubishi UFJ Financial Group Inc. and other megabank groups advanced along with brokerages and insurers.

Tokyo Dome Corp. plunged 8.40 percent while M3 Inc. shot up 9.99 percent, after Nikkei Inc. said it will replace the stadium operator with the medical information services provider as a Nikkei component.

Game-maker Nintendo Co. and seasoning producer Ajinomoto Co. also fell.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 370 points to end at 21,070.

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