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Japan Nikkei gains on renewed U.S.-China deal hopes

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Headline indices of the Japan share market advanced on Friday, 08 November 2019, following a positive lead from Wall Street overnight after the US and China have reportedly agreed to roll back tariffs as part of any new trade deal. Around late afternoon, the 225-issue Nikkei Stock Average advanced 35.75 points, or 0.15%, to 23,366.06, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 2.71 points, or 0.16%, at 1,700.84.

Total 18 issues of the 33 industry category of Topix index inclined into positive territory, with Precision Instruments, Iron & Steel, Transportation Equipment, Warehousing & Harbor Transportation Services, and Wholesale Trade issues being notable gainers, while Chemicals, Real Estate, Electric Power & Gas, and Oil & Coal Products issues were notable losers.

Market sentiment rebounded after China said it had agreed with the United States to cancel tariffs in phases, a key consideration in reaching a deal to end a trade war that has crimped economic growth and roiled markets.

A spokesman for China's Ministry of Commerce told reporters these roll-backs could happen even before a "phase one" trade deal is signed. No timetable was indicated, but a phase one deal is widely expected to include a U.

S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cellphones, laptop computers and toys.

The US and China have imposed tariffs on each others' goods, worth billions of dollars worth of annual trade since last year. The duties have hurt trade, acting as a drag on the economies of both countries and putting pressure on their leaders to strike an agreement. The International Monetary Fund estimated that the US-China trade war will shave almost a percentage point off of global growth this year.

Investors were also eyeing developments in Europe, after the European Central Bank issued an update on economic and monetary developments that predicted sluggish but positive economic growth in the second half of 2019.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback. The Japanese yen traded at 109.24 against the dollar after weakening from levels below 109 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: Fri, November 08 2019. 09:52 IST