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