Tokyo’s Nikkei hits fresh one-year high on hope for trade deal | Money


Passersby are reflected on a stock quotation board outside a brokerage in Tokyo, Japan, August 6, 2019. — Reuters pic
Passersby are reflected on a stock quotation board outside a brokerage in Tokyo, Japan, August 6, 2019. — Reuters pic

TOKYO, Oct 28 — Tokyo’s benchmark Nikkei index rose to another one year high today, tracking rallies on Wall Street after upbeat comments from US trade officials about progress in talks with China.

The Nikkei 225 index gained 0.30 per cent, or 67.46 points, to close at 22,867.27, rising for a sixth straight session.

The broader Topix index was flat at 1,648.43.

“US indexes rallied on the backdrop of brisk corporate earnings and progress in the US-China trade talks,” Hirokazu Kabeya, chief global strategist at Daiwa Securities, said.

The Japanese market got a tailwind from the rallies in US shares, analysts said.

The focus this week includes China’s manufacturing PMI data due on Thursday, as investors are watching the extent of impact from the trade war with the US, Kabeya said.

Investors are also closely watching the US Federal Reserve’s policy decision on Wednesday and the Bank of Japan’s policy decision on Thursday, he added.

“The Tokyo market has yet to overheat,” said Daiwa Securities chief technical analyst Eiji Kinouchi.

“There is room for further gain,” said Kinouchi.

The US dollar fetched 108.73 yen in Asian afternoon trade, against 108.67 yen in New York late Friday.

In Tokyo, China-linked shares were higher, with electronic parts maker Rohm trading up 1.15 per cent at 8,770 yen and construction machine maker Komatsu up 1.33 per cent at 2,586 yen.

Industrial robot maker Fanuc jumped 2.05 per cent at 21,640 yen. Following the closing bell, the firm downgraded its annual sales and profit forecast.

Canon was down 0.52 per cent at 2,934.5 yen. After the market closed, the company said its net profit nearly halved for nine months to September, revising downward its annual sales and profit forecast. — AFP



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