Business / Financial Markets | TSE DATA & REPORT

Nikkei tests 22,000 as winning streak reaches nine days

JIJI

The benchmark Nikkei average topped 22,000 in Tokyo trading on Friday, with buying sentiment reinvigorated by stepped-up easing from the European Central Bank and rosier prospects for a U.S.-China trade deal.

The 225-issue Nikkei average rose 228.68 points, or 1.05 percent, to end at 21,988.29 on the Tokyo Stock Exchange, advancing for the ninth straight market day, the longest winning streak since a 16-session rise in October 2017. On Thursday, the key market gauge gained 161.85 points.

The Topix index of all issues listed on the TSE’s first section jumped 14.77 points, or 0.93 percent, to 1,609.87, after adding 11.44 points the previous day.

The market opened higher after European and U.S. equities were buoyed by the ECB’s decision at a policy-setting meeting Thursday to cut its policy rate by 10 basis points to minus 0.5 percent and start a fresh bond-buying program.

Tokyo stocks also got a boost from remarks by U.S. President Donald Trump suggesting the possibility of Washington and Beijing striking an “interim agreement” in their upcoming trade talks in Washington, brokers said.

Following a dip, the market quickly rebounded and ascended further in midmorning trading.

In the afternoon, growing expectations that the U.S Federal Reserve and the Bank of Japan will take further easing steps next week lifted the Nikkei average above the 22,000 threshold on an intraday basis for the first time since May 7.

“A series of news suggesting an easing of U.S.-China trade tensions and the resulting depreciation of the yen have led to the latest rally,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

He also offered the view that profit-taking may gain strength next week amid a spreading sense that the market is overheating.

Rising issues outnumbered falling ones 1,555 to 527 on the first section, while 69 issues were unchanged.

Volume swelled to 1.8 billion shares from Thursday’s 1.582 billion shares, due partly to active transactions linked to the special quotation fixing to settle September stock futures and options contracts.

Realtors and transporters were noticeably higher, with Mitsubishi Estate jumping 2.73 percent, Nomura Real Estate 2.13 percent, JR Tokai 2.73 percent and JR East 2.50 percent.

Mitsui High-tec surged 16.57 percent after the machine tool maker announced better-than-expected earnings for the February-July first half.

Among other winners were technology investor SoftBank Group and job information provider Recruit Holdings.

Meanwhile, securities firms met with selling, with Nomura down 0.65 percent and Daiwa down 0.41 percent.

Also on the negative side were automaker Subaru and online fashion mall operator Zozo.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 170 points to end at 21,800.