Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rise further on U.S.-China trade expectations

JIJI

Tokyo stocks rose Monday for the second consecutive session, thanks to renewed expectations for progress in U.S.-China trade negotiations.

The Nikkei 225 average advanced 179.93 points, or 0.78 percent, to end at 23,292.81 after rising 74.30 points Friday.

The Topix, which covers all issues listed on the Tokyo Stock Exchange’s first section, finished 11.62 points, or 0.69 percent, higher at 1,702.96. It gained 1.96 points Friday.

Stocks moved broadly higher at the outset, following a Wall Street rebound Friday spurred by remarks by U.S. President Donald Trump and Chinese President Xi Jinping indicating that they have come close to signing “phase one” of a trade deal, brokers said.

Hong Kong shares’ vigorous performance in the wake of pro-democracy candidates’ sweeping victories in Sunday’s district council elections also brightened sentiment, they said.

After the initial spurt, however, the market failed to go up further, although it remained buoyant for the rest of the day.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said that taken as a whole, “trading was suffering from Monday lethargy.”

Echoing Ota, Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., pointed out that there were few foreign participants.

“The lack of fresh developments on the U.S.-China trade front resulted in the dormant afternoon session,” he went on to say.

On the TSE’s first section, rising issues far outnumbered falling ones 1,555 to 508, while 91 issues were unchanged. Volume fell to 1.011 billion shares from 1.117 billion Friday.

China-linked issues, including construction machinery maker Komatsu and industrial robot producer Fanuc, attracted buying.

Toyobo rose 1.25 percent after Mizuho Securities raised its target stock price for the textile maker.

Also on the positive side were resources developer Inpex and technology investor SoftBank Group.

Electronics giant Panasonic dived 2.29 percent as its business plans failed to meet investors expectations.

Among other losers were game maker Bandai Namco and drugmaker Takeda.