Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks soar as hopes rise for successful outcome to U.S.-China trade talks

JIJI

Tokyo stocks shot up Friday following a continued rally on Wall Street amid ballooning expectations for a successful end to the ongoing trade talks between the United States and China.

The 225-issue Nikkei average gained 246.89 points, or 1.15 percent, to end at 21,798.87. On Thursday, the key market gauge rose 95.60 points.

The Topix index of all issues listed on the first section of the Tokyo Stock Exchange rebounded 13.85 points, or 0.88 percent, to finish at 1,595.27 after shedding 0.28 point the previous day.

Active purchases pushed up stocks from the outset of the day’s trading, as investors took heart from the second consecutive New York market rally Thursday in the wake of U.S. President Donald Trump’s Twitter feed saying he would meet with Chinese Vice Premier Liu He, Beijing’s top trade negotiator, on Friday, brokers said.

Sentiment in the Tokyo market was brightened further by Trump’s comment in Washington that trade negotiation with China through Friday is “going really well” and that the two economies are “wrapping it up.”

The market got a boost from the yen’s weakening against the dollar, brokers added.

Market sources also pointed out that the Nikkei’s jump was attributable to brisk performance of Fast Retailing, a heavily weighted component of the index.

The market’s advance slowed in the afternoon as players retreated to the sidelines ahead of the three-day weekend. The Tokyo market will be closed Monday for a national holiday.

“Investors really welcomed the announcement of the Trump-Liu meeting,” Hirofumi Yamamoto, strategist at Toyo Securities Co., said. “Without progress in the trade talks, there will be no such meeting.”

Meanwhile, a midsize securities firm official suggested that investors not lower their guard until they actually know the outcome of the talks, saying that expectations for a deal to settle the U.S.-China trade war “turned into disappointments a number of times.”

Rising issues outnumbered falling ones 1,231 to 807 on the first section, while 115 issues were unchanged.

Automakers such as Toyota and Honda attracted purchases thanks to the weaker yen.

Retail giant Seven & i Holdings drew buying on its announcement of plans to cut some 3,000 jobs at group department stores and supermarkets.

Fast Retailing surged 2.63 percent due to year-on-year earnings growth last March and April.

Among other winners were drug maker Eisai and technology giant Sony.

On the other hand, industrial robot producer Yaskawa Electric met with selling as its March-April earnings and revised operating profit outlook for the full year through next February disappointed investors.

Also on the negative side were technology investor SoftBank Group and daily goods maker Kao.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 280 points to end at 21,800.

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