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Japan Nikkei extends gain on US-China trade ceasefire

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Headline indices of the Japan share market advanced for second straight session on Tuesday, 02 July 2019, on following gains on the Wall Street overnight, as truce between the U. S. and China put investors in a buying mood. Market gains were, however, capped on profit-taking after rallying more than 2 per cent in the previous session. Total 29 subsectors out of 33 subsectors of the Topix's index inclined, with Marine Transportation, Wholesale Trade, Insurance, Electric Appliances, and Pulp & Paper issues being notable gainers, while Oil & Coal Products and Mining issues were notable losers. At closing bell, the 225-issue Nikkei Stock Average rose 0.06%, or 13.48 points, to 21,743.45, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange rose by 0.28%, or 4.42 points, at 1,589.27.

The gains in the Tokyo market came after Presidents Donald Trump and Xi Jinping hit the reset button in their trade negotiations over the weekend at the Group of 20 meeting in Osaka, Japan. On Saturday, Trump said the U. S. would hold off for the time being plans to impose new tariffs on $300 billion in Chinese goods. The move still leaves 25% import taxes imposed by the U. S. on $250 billon of Chinese imports in place, however.

And China maintains the tariffs it placed on $110 billion in American goods, primarily agricultural products. Trump also said he would allow U. S. companies to sell some components to Chinese telecommunications giant Huawei, which last month was placed on an American blacklist as a threat to national security.

ECONOMIC NEWS: Japan monetary base was up 4.0 percent on year in June, the Bank of Japan said on Tuesday - coming in at 512.991 trillion yen. That follows the 3.6 percent increase in May. Banknotes in circulation were up an annual 3.1 percent, while coins in circulation advanced 2.3 percent. Current account balances climbed 4.2 percent, including a 3.8 percent increase in reserve balances. The adjusted monetary base jumped an annual 7.2 percent to 510.159 trillion yen. For the second quarter of 2019, the monetary base was up 3.6 percent on year.

CURRENCY NEWS: Japanese yen, often seen as a safe-haven currency, was little changed against greenback on Tuesday. The Japanese yen, viewed as a safe-haven currency, traded at 108.40 against the dollar following lows above 108.4 seen yesterday.

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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, July 02 2019. 11:34 IST
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