Tokyo stocks snapped their two-day losing streak Thursday as buying was boosted by media reports suggesting an early conclusion of a preliminary trade deal between the United States and China.
The Nikkei average of 225 blue chips listed on the Tokyo Stock Exchange advanced 164.86 points, or 0.71 percent, to end at 23,300.09, after diving 244.58 points Wednesday.
The Topix index of all TSE first-section issues finished up 8.14 points, or 0.48 percent, at 1,711.41, following a 3.46-point drop the previous day.
The market got off to a robust start, after Bloomberg reported Wednesday that the United States and China are moving closer to agreeing on a tariff rollback in the so-called phase one trade deal.
U.S. President Donald Trump’s comment that trade negotiations with China are “going very well” brightened sentiment as well, brokers said.
News reports that the Japanese government will adopt a fresh stimulus package worth ¥13 trillion later Thursday also kept stocks buoyant throughout the session, although investors refrained from active buying after the early morning market spurt, they noted.
“Unable to take the Trump remark at face value, investors retreated to the sidelines to wait for fresh incentives in the afternoon,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Observing that the market has been swayed by Trump’s comments, Miura pointed out that participants have no idea what will happen next concerning the trade deal.
On the TSE’s first section, rising issues far outnumbered falling ones 1,275 to 784 while 98 issues were unchanged. Volume rose to 1.15 billion shares from Wednesday’s 1.08 billion.
Financials, including mega-bank Mitsubishi UFJ and brokerage Nomura Holdings, attracted buying thanks to their U.S. peers’ robust performance Wednesday.
Keyence jumped 1.26 percent after Mizuho Securities raised its target stock price for the factory automation equipment maker.
Technology investor SoftBank Group and Nippon Steel also went up.
On the other hand, restaurant chain Kushikatsu Tanaka dropped 7.15 percent due to an 11.9 percent year-on-year fall in its same-store sales in November.
Among other losers were cybermall operator Rakuten and game maker Bandai Namco.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average surged 210 points to end at 23,310.
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