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Japan Nikkei extends gain on Mexico deal, Sino-U.S. rift caps gains

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The share market extended gains on Tuesday, 11 June 2019, on tracking positive close of US market overnight after the U. S. reached an agreement with on tariff. Market gains were, however, limited as fresh U. S. trade threats against China, with eyes on a possible meeting between Trump and at the summit in this month. Around afternoon trade, the 225-issue Nikkei Stock Average advanced 0.35%, or 73.67 points, to 21,208.09, while the broader Topix index of all First Section issues on the grew 0.5%, or 7.53 points, at 1,560.47.

Total 25 subsectors out of 33 subsectors of the Topix's were in positive territory, with Securities & Commodities Futures, Mining, Banks, & Steel, and & issues being notable gainers, while Land Transportation, Warehousing & Harbor Transportation Services, and Precision Instruments issues were notable losers.

The market mood was brightened on tracking positive close of US market overnight after suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration. The Dow Jones Industrial Average rose 78.74 points, or 0.3%, higher at 26,062.68. The S&P 500 gained about 0.5% at 2,886.73. The Nasdaq Composite rose 1.1% to 7,823.17.

Market participants are awaiting for a possible meeting between Trump and at the summit in this month.

The US said Monday that he expects to meet with Chinese at the Group of 20 summit at the June 28-29 summit in Osaka, Japan although is yet to confirm any such meeting. That may have given investors some cause for optimism in the dispute between and Beijing, though Trump noted that an additional wave of U. S. tariffs on Chinese goods will go into effect if the Xi cannot make progress in trade talks with Chinese President Xi Jinping at the summit.

CURRENCY NEWS: Japanese yen marginally depreciated against greenback on Tuesday, on softening demand for safe haven currency after the and agreed on a deal to avoid tariffs. The dollar rose to 108.64 Japanese yen from 108.44 yen on Monday.

COMMODITY NEWS: U. S. Intermediate (WTI) futures were up 0.13% at $53.33 per barrel on Tuesday, finding some traction after sliding the previous day. fell on Monday, as major producers and had yet to agree on extending an output-cutting deal and with U. S.-trade tensions continuing to threaten demand for the commodity. Benchmark U. S. crude slid by 1.4% to settle at $53.26 a barrel on Monday. Brent crude oil, the international standard, closed 1.6% lower at $62.29 a barrel on Monday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 11 2019. 08:29 IST