Japan Stocks climb on US-China trade optimisms

Headline indices of the Japan share market advanced on Friday, 05 April 2019, on risk sentiments supported by cheaper yen against greenback and rising hopes the US and China will hammer out a trade deal after U.S. President Donald Trump said on Thursday the United States and China were getting very close to a trade deal that could be announced within four weeks. At closing bell, the 225-issue Nikkei Stock Average inclined 82.55 points, or 0.38%, at 21,807.50. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 5.70 points, or 0.35%, at 1,625.75.

Total 20 subsectors out of 33 subsectors of the Tokyo Stock Exchange inclined, whereas remaing 13 subsectors closed down, with shares in Marine Transportation, Metal Products, Textiles & Apparels, Air Transportation, and Electric Appliances issues being notable gainers, whereas Fishery, Agriculture & Forestry, Retail Trade, Foods, and Other Financial Business issues were notable losers.

The market gains were supported after the Dow Jones industrial average extended gains on the New York Stock Exchange Thursday on sustained hopes for progress in the ongoing U.S.-China trade negotiations. As per reports, Vice Premier Liu He said a new consensus had been reached on the text of an economic and trade agreement. U.S. President Donald Trump said on Thursday the United States and China were getting very close to a trade deal that could be announced within four weeks, but he issued a warning to Beijing that, absent a pact, it would be difficult to allow trade to continue. Chinese President Xi Jinping assured Trump that text of the China-U.S. trade could be finalised soon, in a message conveyed by Chinese Vice Premier Liu He. Stocks lost steam in the afternoon as players held active trading in check to wait for the U.S. jobs report for March. But the yen's weakening against the dollar underpinned the market.

Export-oriented issues rose, with industrial robot producers Yaskawa Electric and Fanuc jumping 2.72 percent and 1.21 percent, respectively. Renova, which makes renewable energy systems, shot up 12.84 percent on an upward revision in its earnings estimates for the year that ended last month. Other major winners included technology giant Sony and game-maker Nintendo. On the other hand, retailer Seven & I Holdings dropped 3.27 percent as its operating profit forecast for the year through February 2020 failed to impress investors. Also beaten were daily goods maker Kao and Chugai Pharmaceutical.

In economic news, the Ministry of Internal Affairs and Communications said that the average of household spending in Japan was up 1.7 percent on year in February, coming in at 271,232, following the 2 percent increase in January.

CURRENCY NEWS: The Japanese yen, widely viewed as a safe-haven currency, was trading in the upper 111 yen zone against the dollar on Friday as hopes of a trade deal between the United States and China lifted risk appetite. The dollar was quoted at 111.65-66 yen compared with 111.63-73 yen in New York and 111.36-37 yen on Thursday in Tokyo.

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