Nikkei gains as trade tensions ease; Apple suppliers, chip-related shares outperform

  • Reuters
  • Stock Market News
Nikkei gains as trade tensions ease; Apple suppliers, chip-related shares outperform
Credit: © Reuters.

By Tomo Uetake

TOKYO, Aug 20 (Reuters) - Japan's Nikkei rose for a third straight day on Tuesday as investors tiptoed back into equities amid signs of a slight easing of trade tensions between the United States and China.

Hopes for fresh stimulus moves by major economies also boosted riskier assets.

On Monday, Washington extended a reprieve that permits China's Huawei Technologies HWT.UL to buy components from U.S. companies by 90 days, to supply existing customers. Nikkei share average .N225 rose 0.6% to 20,677.22 points, while the broader Topix .TOPX added 0.8% to 1,506.77.

"It's like an extension of yesterday's rally -- largely buoyed by short-covering although the moves seemed to lack strong conviction," said a Tokyo-based investment manager.

Investors were growing cautious ahead of the U.S. Federal Reserve's Jackson Hole symposium and G7 (Group of Seven) summit later in the week, he said.

On Wall Street, all three major stock indexes gained overnight, with Apple AAPL.O jumping 1.9% to provide the biggest boost to the Nasdaq. .N/C

That helped Tokyo-listed Apple suppliers, with Taiyo Yuden 6976.T and TDK Corp 6762.T rising 1.6% and Foster Electric 6794.T advancing 1.4%.

After speaking with Apple's chief executive Tim Cook on Sunday, U.S President Donald Trump said the CEO "made a good case" that tariffs could hurt Apple, given that Samsung's products would not be subject to those same tariffs. chipmaking-related firms also got a boost after the U.S. Philadelphia semiconductor index .SOX climbed 1.9% on Monday as Huawei's U.S. chip suppliers, such as Micron Technology MU.O , rose.

Semiconductor manufacturing equipment maker Screen Holdings 7735.T surged 5.4% and chipmaking equipment supplier Tokyo Electron 8035.T rallied 1.4%.

Rate-sensitive TSE REIT index .TREIT rose 0.3%, extending its winning streak to an eighth day to hit its fresh 12-year highs since 2007. estate .IRLTY.T was the best performing sector among the Tokyo market's 33 subindexes, with both Mitsui Fudosan 8801.T and Mitsubishi Estate 8802.T up 1.7%.

Hopes for additional stimulus helped sentiment after media reports said Germany is prepared to increase fiscal spending, and after the People's Bank of China took steps to lower corporate borrowing costs by setting a new lending reference rate. on the Tokyo Stock Exchange's main board was thin at 1.58 trillion yen, well below its daily average of 2.33 trillion yen over the past year.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles