Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks advance on hopes for progress in U.S.-China talks

JIJI

Stocks extended their winning streak to a third consecutive session Tuesday, lifted by hopes for progress in trade talks between the United States and China.

The Nikkei 225 average gained 80.51 points, or 0.35 percent, to end at 23,373.32 after rising 179.93 points Monday.

The Topix, which covers all issues on the Tokyo Stock Exchange, finished 2.75 points, or 0.16 percent, higher at 1,705.71 after a rise of 11.62 points Monday.

Sentiment improved after Beijing said top U.S. and Chinese trade negotiators reached consensus on how to resolve core issues of common concern and agreed to continue talks on remaining issues for a “phase one” agreement, brokers said.

The news sent the Nikkei temporarily surging over 300 points before stocks shed most of their gains on profit-taking.

The market’s topside was heavy despite the Chinese announcement as “the news itself is not new and had already been factored into the market,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said that “trading turned sluggish in the afternoon due to a lack of follow-up news on U.S.-China trade talks.”

On the first section, falling issues outnumbered rising ones 1,199 to 852 while 104 issues were unchanged. Volume rose to 1.622 billion shares from 1.011 billion Monday.

Technology issues, including electronic parts makers Rohm and TDK, attracted buying after their U.S. peers rose Monday.

Asahi Kasei rose 1.73 percent a day after the chemical maker announced a decision to acquire North Carolina-based Veloxis Pharmaceuticals.

Also on the positive side were clothing store chain Fast Retailing and job information provider Recruit.

Showa Denko dropped 6 percent on news reports that the industrial materials maker has emerged as a potential buyer of Hitachi Chemical. On the other hand, Hitachi Chemical surged 15.44 percent.

Among other losers were beverage maker Asahi Group and advertising firm Dentsu.