Nikkei hits 4-1/2-month high on carmakers, strong China data

  • Reuters
  • Stock Market News
Nikkei hits 4-1/2-month high on carmakers, strong China data
Credit: © Reuters.

* Japan-U.S. trade talk hopes lift automakers

* SoftBank Group falls on U.S. concerns over T-Mobile-Sprint deal

* Komatsu, Hitachi Construction rise on strong China data

By Ayai Tomisawa

TOKYO, April 17 (Reuters) - Japan's Nikkei rose to a 4-1/2-month high on Wednesday as automakers soared on hopes of progress in Japan-U.S. trade talks, while companies with large exposure to China gained on robust Chinese economic data.

The Nikkei share average .N225 was up 0.3 percent to 22,289.32 at the midday break after earlier reaching 22,345.19, its highest level since early December.

Economy Minister Toshimitsu Motegi said on Tuesday that no deal had been reached on individual trade issues after two days of talks with U.S. Trade Representative Robert Lighthizer, but Motegi hoped for a good result "at an early stage." news lifted shares of automakers facing the threat of higher U.S. tariffs on Japanese auto exports, traders said.

Toyota Motor Corp 7203.T rose 1.8 percent, Honda Motor Co 7267.T added 1.1 percent and Mazda Motor Corp 7261.T soared 2.1 percent.

"There was a possibility that the issue would be brought to the table, so the market seems to be relieved," said Ryohei Yoshida, senior technical analyst at Daiwa Securities.

Strong economic data in China added to the positive sentiment in Japanese stocks.

China's economy grew 6.4 percent in the first quarter from a year earlier, data showed on Wednesday, above expectations.

Industrial output also grew 8.5 percent in March from a year earlier, the fastest pace since July 2014, as factories ramped up production in anticipation of more business amid government measures to support the economy. data sparked gains in construction-related firms with exposure to China.

Construction equipment makers Komatsu Ltd 6301.T gained 2.5 percent and Hitachi Construction Machinery 6305.T advanced 1.9 percent, while industrial machinery maker Yaskawa Electric 6506.T soared 2.8 percent.

Declining stocks included index-heavyweight SoftBank Group Corp 9984.T , down 2 percent on news that the U.S. Justice Department has concerns about the structure of a proposed $26 billion merger of T-Mobile US Inc TMUS.O and SoftBank's Sprint Corp S.N . which has a big impact on the Nikkei benchmark index, took 25 points off the index.

Elsewhere, Omron Corp 6645.T surged 5 percent after Nidec Corp 6594.T said it would buy Omron's automotive electronics unit for about 100 billion yen. broader Topix .TOPX rose 0.3 percent to 1,631.56.

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