Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rise moderately as hopes grow for U.S.-China deal


Tokyo stocks gained moderate ground Monday on buying induced by a rosier prospect for U.S.-China trade talks.

The Nikkei 225 average rose 56.22 points, or 0.25 percent, to end at a fresh year-to-date high of 22,548.90. The key market gauge advanced 40.82 points Friday.

The Topix, which covers issues listed on the first section of the Tokyo Stock Exchange, was up 6.61 points, or 0.41 percent, at 1,628.60 after losing 2.17 points Friday.

Buying took the upper hand from the outset despite a fallback on Wall Street as it closed last week.

Investors were heartened by media reports quoting Liu He, China’s vice premier and top trade negotiator, as saying that substantial progress has been made in negotiations with the United States toward inking the already announced partial trade deal, brokers said.

The market stayed in positive territory throughout the session, also aided by a rise in U.S. index futures in off-hours trading.

But trading was rather lackluster, with players retreating to the sidelines ahead of a special national holiday Tuesday for Emperor Naruhito’s enthronement, brokers said.

“Risk-off sentiment receded further thanks to no signs of the U.S.-China trade conflict escalating,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

“Investors actively hunt laggards in the upbeat market with the Nikkei moving around highest levels since late last year,” an official at a major securities firm said.

Rising issues on the first section outnumbered falling ones 1,432 to 616, while 107 issues were unchanged.

Volume shrank to 891 million shares from 1.082 billion Friday.

Financials such as mega-bank group Mitsubishi UFJ and insurer Tokio Marine attracted purchases after their U.S. peers fared well Friday.

Domestic demand-oriented issues rose, with railway operator Keio advancing 1.79 percent and Mitsubishi Estate 1.37 percent.

Nippon Steel, Mitsui Mining & Smelting and other metals were buoyant, as were oils, including Idemitsu Kosan.

Job information provider Recruit Holdings and air conditioner maker Daikin also rose.

On the other hand, drugmakers including Eisai and Hisamitsu met with selling.

Mobile phone carrier SoftBank extended its losing streak to a fifth session, while its rivals NTT Docomo and KDDI were sought.

Clothing store chain Fast Retailing and industrial robot producer Fanuc, both heavily weighted Nikkei components, went south on selective selling.

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