Japan Nikkei rises on US-China trade optimism

Headline indices of the Japan share market were higher on Thursday, 13 December 2018, as risk appetite buying continued on tracking positive lead from Wall Street overnight on the improved outlook for U.S.-China trade. Meanwhile, buying momentum spirited on yen halt in yen appreciation against greenback and as British Prime Minister Theresa May survived a no-confidence vote. Total 31 issues out of 33 issues of the Topix index inclined, with shares in Iron & Steel, Oil & Coal Products, Marine Transportation, Nonferrous Metals, Metal Products, and Mining issues being notable gainers. In late afternoon trades, the 225-issue Nikkei index added 263.46 points, or 1.22%, at 21,866.21. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 16.31 points, or 1.02%, to 1,622.92.

The risk appetite buying underpinned after Chinese President Xi Jinping's government has taken steps this week to soothe the U.S., including a plan to cut tariffs on U.S. cars to 15 percent from 40 percent. China also intends to resume purchases of American soybeans soon. China said last week it would deepen reforms in the area of science and technology and put more effort into protecting intellectual-property rights.

The Chinese regime is reportedly planning to scrap an industrial policy criticized by the Trump administration as protectionist, in favor of a program more hospitable to foreign companies. The industrial planMade in China 2025″proposes to transform China into a high-tech manufacturing powerhouse by 2025, in fields including artificial intelligence, cloud computing, and big data. As per reports, China's top planning agency is preparing a new plan to replace Made in China 2025, which would play down China's bid to dominate manufacturing and allow more access for foreign firms. The new policy is set to be introduced early next year.

The move comes as the President Donald Trump and Chinese leader Xi Jinping agreed to a temporary trade truce in Argentina on Dec. 1. The two sides are expected to negotiate over U.S. demands for stronger Chinese protections for U.S. intellectual property, an end to forced technology transfers and greater market access to China for U.S. companies.

In the U.K., May won a vote of confidence in her leadership of the Conservative Party, with Tory members of Parliament backing her by 200 to 117 in the secret ballot. Despite that settling doubts over her immediate future, it is likely to be only a temporary reprieve for the embattled premier who is facing hardened opposition in Parliament to the Brexit agreement she negotiated with the European Union, and her attempts to get better terms have so far fallen flat.

CURRENCY NEWS: The Japanese yen, which can be a haven during market uncertainty, was little changed in the lower-113 yen range against dollar. The dollar fetched at 113.29-30 yen compared with 113.22-32 yen in New York and 113.40-41 yen in Tokyo on Wednesday. The euro fetched 128.85-89 yen against 128.69-79 yen in New York and 128.41-45 yen in Tokyo on Wednesday

OFFSHORE MARKET NEWS: US share market closed higher on Wednesday, after a series of developments boosted expectations that a U.S.-China trade deal could be reached in the coming months. The Dow Jones Industrial Average rose 157.03 points, or 0.6%, to end at 24,527.27, while the S&P 500 index advanced 14.29 points, or 0.5%, to 2,651.07. The Nasdaq Composite Index climbed 66.48 points, or 1%, to 7,098.31.

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