Japan stocks reach 1-mth high on news US-China trade talks to resume

  • Reuters
  • Stock Market News
Japan stocks reach 1-mth high on news US-China trade talks to resume
Credit: © Reuters.

* Nikkei ends up 2.12%, brushes highest level since Aug. 2

* Beijing, Washington to hold trade talks, boosts risk sentiment

By Tomo Uetake

TOKYO, Sept 5 (Reuters) - Japanese shares closed at their highest in more than a month on Thursday as investors cheered the announcement that U.S.-China trade talks will resume and news from Britain and Hong Kong that also improved risk appetites.

The benchmark Nikkei average .N225 ended the day up 2.12% at 21,085.94, the highest close since Aug. 2. During the day, it touched 21,164.61, also a peak since Aug. 2.

On the Nikkei index, there were 207 advancers and 18 decliners.

Japanese shares were boosted after Beijing said China and the United States agreed to hold trade talks in Washington in early October. market was already on a solid footing after Hong Kong leader Carrie Lam on Wednesday withdrew an extradition bill that triggered months of sometimes violent protests and as British lawmakers voted to prevent a no-deal Brexit on Oct. 31. was a variety of positive factors for the market, with the news of Sino-U.S. trade negotiations having a notably big impact," said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities.

All of the Tokyo Stock Exchange's 33 subsectors were in positive territory as the market attracted hefty purchases across the board.

Cyclical sectors were particularly in demand, with precision machinery .IPRCS.T and sea transport .ISHIP.T the top two performing subindexes on the broader Topix, up 3.73% and 3.72%, respectively.

The broader Topix .TOPX added 1.84% to 1,534.46.

Other notable movers included the TSE REIT index .TREIT , edging up 0.44% to a fresh 12-year high. service provider M3 Inc 2413.T soared 10% and baseball stadium operator Tokyo Dome Corp 9681.T fell 8.4% after index provider Nikkei announced it will drop the latter from the Nikkei 225 share average and replace it with the former, from Oct 1.

Candidates that did not make the index list slipped. Kakaku.com 2371.T , Zozo 3092.T and Nintendo 7974.T shed 5.4%, 1% and 1.5%, respectively.

Nissan Motor Co 7201.T gained 2% despite media reports quoting its chief executive as admitting to improperly receiving stock-related compensation, in the latest case of financial misconduct among executives at Japan's second-largest automaker. stocks that gained the most among the top 30 core Topix names were Hitachi Ltd 6501.T which gained 5.1%, followed by Shin-Etsu Chemical Co's 4063.T 4.7% rise.

The underperformers among the Topix 30 were Nintendo Co 7974.T , which lost 1.5%, followed by Nippon Telegraph and Telephone Corp 9432.T , which declined 0.8%.

The volume of shares traded on Topix was 1.35 billion, compared to the average 1.1 billion yen in the past 30 days.

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