Business / Financial Markets | TSE DATA & REPORT

Nikkei rebounds on rosy comments about U.S.-China trade talks

JIJI

Tokyo stocks bounced back Friday with help from renewed expectations for progress in the U.S.-China trade negotiations.

The Nikkei average of 225 selected issues on the Tokyo Stock Exchange rose 161.77 points, or 0.70 percent, to end at 23,303.32. On Thursday, the key market gauge fell 178.32 points.

The Topix index of all issues on the TSE’s first section closed up 12.27 points, or 0.73 percent, at 1,696.67, after losing 15.93 points the previous day.

The market opened higher and the advance gathered pace in the early morning, soon after White House economic adviser Larry Kudlow said that the U.S.-China trade talks have been “very constructive” and that the two countries are “getting close” to an agreement, brokers said.

A halt in the yen’s strengthening against the dollar also supported the market’s rally, brokers said.

The key stock indexes moved little in the afternoon, with investors retreating to the sidelines ahead of the weekend.

“Kudlow’s comments spurred buying in Tokyo stocks in the morning, but they lost steam later as Shanghai equities moved aimlessly, trading in and out of positive territory,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

“Investors seem to care only about the course of the U.S.-China trade talks,” an official at a major securities firm said.

Rising issues overwhelmed falling ones 1,711 to 370 in the TSE’s first section, while 73 issues were unchanged.

Volume fell to 1.365 billion shares from Thursday’s 1.400 billion shares.

Shipping firms such as Kawasaki Kisen and Nippon Yusen attracted purchases.

Chipmaking gear manufacturer Tokyo Electron rose for the fifth consecutive session.

Among other major winners were industrial robot producer Fanuc and drugmaker Takeda.

On the other hand, oil names including Idemitsu and Inpex met with selling.

Cosmetics maker Shiseido fell for the sixth straight trading day.

Also on the negative side were technology investor SoftBank Group and automaker Suzuki.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 220 points to end at 23,340.