Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks bounce back on positive trade news

JIJI

Tokyo stocks rebounded Thursday thanks to favorable trade-related developments involving Japan, the United States and China.

The 225-issue Nikkei average rose 28.09 points, or 0.13 percent, to end at 22,048.24. On Wednesday, the key market gauge fell 78.69 points.

The Topix index of all issues listed on the first section of the Tokyo Stock Exchange was up 3.19 points, or 0.20 percent, at 1,623.27, after losing 2.86 points the previous day.

The Tokyo market got off to a vigorous start in the wake of a Wall Street rally sparked by U.S. President Donald Trump’s remarks suggesting the possibility of Washington and Beijing striking a trade deal “sooner than” people think, brokers said.

The initial spurt, in which the Nikkei gained some 160 points, was also attributed to Prime Minister Shinzo Abe and Trump signing in New York on Wednesday a bilateral trade agreement that ensured no additional U.S. tariffs on Japanese cars, according to brokers. But the market soon came under selling pressure and constantly cut gains for the rest of the session.

“A sense of relief spread among investors after the inking of the Japan-U.S. trade pact, because it contains neither car tariffs nor a currency clause,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.

After its morning jump, however, the market met with stepped-up selling by players who had bought stocks in anticipation of a rise on Thursday, the last market day for securing rights to midterm dividends, Yamamoto observed.

Rising issues outnumbered falling ones 1,357 to 718 on the first section, while 76 issues were unchanged.

Volume grew to 1.427 billion shares from Wednesday’s 1.127 billion shares.

China-linked issues rose on renewed optimism over a U.S.-China trade deal. They included industrial robot producer Fanuc Corp. and construction machinery-maker Komatsu.

Among other winners were air conditioner-maker Daikin Industries and cybermall operator Rakuten Inc.

Meanwhile, airlines and railways bled, with ANA Holdings Inc. losing 1.51 percent and railway operator West Japan Railway Co. 1.09 percent.

Also on the negative side were job information service firm Recruit Holdings Co. and daily goods maker Kao Corp.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 60 points to end at 21,860.

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