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Japan Nikkei surges on optimism over trade

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Japan share market climbed to 13-month highs on Tuesday, 05 November 2019, after a long weekend, with investors risk sentiments propelled higher on following record closes overnight on Wall Street amid optimism about a near-term U. S.-China trade resolution. Around late afternoon, the 225-issue Nikkei Stock Average surged 474.11 points, or 2.07%, to 23324.88, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange inclined 30.02 points, or 1.8%, at 1,696.32.

All 33 industry category of Topix index inclined into positive territory, with Mining, Pulp & Paper, Metal Products, Oil & Coal Products, Glass & Ceramics Products, Machinery, and Securities & Commodities Futures issues being notable gainers.

On Monday, all three major stock indexes on Wall Street finished at record highs on increasing signs the United States and China are inching closer to a truce in their trade war and on optimism the U. S. economy is well poised for solid consumer-driven growth.

On the trade front, Chinese President Xi Jinping on Tuesday called for consultation and cooperation to resolve international disputes. Xi's remarks, made at the opening ceremony of the China International Import Expo. That came following recent positive developments regarding the ongoing U. S.-China trade war. The U. S. Commerce Secretary Wilbur Ross said on Sunday that U.

S.-China trade deal expected to be signed between U. S. President Donald Trump and Chinese President Xi Jinping. Ross said the agreement could be reached by the two leaders in one of several locations, including Iowa, Alaska, Hawaii or somewhere in China.

The deal was originally anticipated to be inked at this month's Asia-Pacific Economic Cooperation summit in Chile, an event that has since been cancelled due to protests in the country. China said Friday it reached a consensus with the U. S. in principle following talks last week. Last month, U. S. President Donald Trump said both sides had come to a very substantial phase one trade agreement that is expected to be signed later in November.

Shares of China- and semiconductor-related companies advanced, with Construction machinery makers Komatsu and Hitachi Construction up 4.8% and 4.7%, respectively, while Kobe Steel added 2.6%. Chip-related SUMCO, Advantest and Tokyo Electron rose 4.2%, 3.5% and 2.2%, respectively.

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 108.78 per dollar after weakening from levels below 108.5 in the previous session.

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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, November 05 2019. 10:49 IST