Japan Market rises on US-China trade hopes

Headline indices of the Japan share market closed higher on Thursday, 26 September 2019, as investors risk sentiments bolstered on upbeat comments from US President Donald Trump on China trade talks and the announcement of a US-Japan trade deal. At closing bell, the 225-issue Nikkei Stock Average inclined 28.09 points, or 0.13%, to 22,048.24, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 3.19 points, or 0.2%, at 1,623.27.

Total 22 out of 33 industry category of Topix index inclined into positive territory, with Iron & Steel, Pulp & Paper, Glass & Ceramics Products, Securities & Commodities Futures, and Marine Transportation issues being notable gainers, while Mining, Air Transportation, Precision Instruments, and Services issues were notable losers.

Tokyo market commenced trading with firm footing after US President Donald Trump said a deal to end a nearly 15-month trade war with China "could happen sooner" that people think. The two largest economies of the world have attempted to find a deal to end their protracted trade dispute which has lasted for more than a year and rattled financial markets globally.

Trump and Japanese Prime Minister Shinzo Abe signed a limited trade deal on Wednesday that cuts tariffs on US farm goods, Japanese machine tools and other products while further staving off the threat of higher US car duties.

Shares of Japanese automakers jumped after the chairman of the Japan Automobile Manufacturers Association said trade negotiations between Tokyo and Washington were headed in the direction of avoiding auto tariffs. Toyota gained 1.1% while Honda added 1.4% and Subaru surged 2.2%.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of uncertainty, appreciated against greenback on Thursday. The Japanese yen traded at 107.63 against the dollar after seeing an earlier low of 107.79

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