Record-breaking advance on Wall Street helped Tokyo stocks extend their gains on Wednesday.
The 225-issue Nikkei average climbed 64.45 points, or 0.28 percent, to end at 23,437.77, after rising 80.51 points on Tuesday.
The TOPIX index of all issues listed on the first section of the Tokyo Stock Exchange finished up 5.27 points, or 0.31 percent, at 1,710.98, following a 2.75-point rise the previous day.
Investors cheered all three major U.S. market gauges —the Dow Jones industrial average, the Nasdaq composite index and the S&P 500 —rewriting their closing highs on Tuesday, brokers said.
Sentiment was brightened by comments by China’s Commerce Ministry and U.S. President Donald Trump separately indicating that the two economic superpowers are close to reaching their “phase one” trade deal.
The yen’s weakening against the dollar and brisk performance of Shanghai and other Asian stocks also supported the Tokyo market.
But stocks lost steam in the latter half of the afternoon session.
Players found it difficult to buy up only on news about “progress” in the U.S.-China trade talks, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.
“They were waiting for fresh incentives,” he added.
Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., pointed out that the Nikkei average cannot go far higher than 23,500 unless Trump and Chinese President Xi Jinping sign the phase one deal.
On the TSE’s first section, rising issues outnumbered falling ones 1,436 to 637 while 82 issues were unchanged. Volume fell to 1.07 billion shares from Tuesday’s 1.62 billion shares.
Oil names, including Inpex and Idemitsu, were bought in the wake of Tuesday’s rise in New York crude oil futures.
Aska Pharmaceutical jumped 4.25 percent after announcing progress on the ongoing clinical trial for a new uterine fibroids medicine in Japan.
Among other winners were air conditioner maker Daikin and mobile phone carrier KDDI.
On the other hand, Alfresa, Medipal and two other drug wholesalers fell on a media report that the Japan Fair Trade Commission raided their headquarters and other places on bid-rigging charges.
Real estate company Open House and cosmetics maker Shiseido also went down.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 100 points to end at 23,480.
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