Tokyo stocks end higher as hopes grow ahead of US-China sum­mit

The Myanmar Times - - Business International -

TOKYO stocks ended higher Wed­nes­day on hopes that US-China trade ten­sion may ease fol­low­ing re­marks by a White House of­fi­cial sug­gest­ing a pos­si­ble pos­i­tive out­come from a planned meet­ing of the lead­ers of the two ma­jor economies.

The 225-is­sue Nikkei Stock Av­er­age ended up 224.62 points, or 1.02 per­cent, from Tues­day at 22,177.02. The broader Topix in­dex of all First Sec­tion is­sues on the Tokyo Stock Ex­change fin­ished 9.50 points, or 0.58 per­cent, higher at 1,653.66.

Gain­ers were led by ser­vice, ma­chin­ery and phar­ma­ceu­ti­cal is­sues.

The Nikkei in­dex ad­vanced for the fourth con­sec­u­tive trad­ing day with in­vestors wel­com­ing re­marks by U.S. Pres­i­dent Don­ald Trump’s eco­nomic ad­viser Larry Kud­low sug­gest­ing that Trump and Chi­nese Pres­i­dent Xi Jin­ping may reach a trade deal when they meet on the side­lines of the Group of 20 sum­mit to start Fri­day in Ar­gentina.

“Shares drew buy­ing amid ex­pec­ta­tions that the lead­ers will reach some sort of con­clu­sion... but their up­side was heavy amid lack of de­tails of the pos­si­ble out­come,” said Yu­taka Miura, se­nior tech­ni­cal an­a­lyst at Mizuho Se­cu­ri­ties Co.

Mar­ket sen­ti­ment was also sup­ported by the progress made toward the pas­sage of a bill that would al­low more for­eign work­ers into Ja­pan. The bill is de­signed to al­le­vi­ate the coun­try’s se­ri­ous la­bor crunch caused by its ag­ing so­ci­ety and de­clin­ing birthrate.

“Hu­man re­source ser­vice is­sues were bought on ex­pec­ta­tions of growth in their busi­nesses,” Maki Sawada, vice pres­i­dent of the in­vest­ment re­search and in­vestor ser­vices depart­ment at No­mura Se­cu­ri­ties Co., said, touch­ing on the bill that passed the House of Rep­re­sen­ta­tives on Tues­day.

The Topix in­dex, how­ever, briefly fell into neg­a­tive ter­ri­tory due to weak auto is­sues fol­low­ing re­ports that Trump may levy tar­iffs on imported cars from next week, bro­kers said.

On the First Sec­tion, ad­vanc­ing is­sues out­num­bered de­clin­ers 1,416 to 612, while 85 ended the day un­changed.

Firms do­ing busi­ness in China drew buy­ing. In­dus­trial ro­bot maker Yaskawa Elec­tric ad­vanced 210 yen, or 6.2 per­cent, to 3,575 yen and ma­chine tool maker DMG Mori climbed 72 yen, or 4.9 per­cent, to 1,556 yen.

Re­cruit­ment firms such as Re­cruit Hold­ings was ahead 143 yen, or 5.1 per­cent, at 2,938 yen, en-ja­pan rose 275 yen, or 6.5 per­cent, to 4,490 yen, with Pa­sona Group up 58 yen, or 4.5 per­cent, at 1,354 yen.

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