* Companies with high exposure to China soar
* Renesas jumps 10 pct; report quotes chief on self-driving ambition
By Ayai Tomisawa
TOKYO, Dec 3 (Reuters) - Japan's Nikkei surged to a six-week high on Monday after the United States and China suspended the imposition of new tariffs and agreed to try to reach a trade deal within 90 days. Nikkei share average .N225 soared 1.0 percent to 22,574.76, the highest closing level since Oct. 22.
Japanese cyclical stocks such as those in tech, autos and machinery that have large exposure to the Chinese market outperformed.
The U.S.-China truce "is raising investors' risk appetite especially on stocks that have underperformed lately," said Yoshinori Shigemi, a global market strategist at JPMorgan (NYSE: JPM ) Asset Management.
"In the mid-term, there are concerns that new tariffs will start after 90 days, but the market also expects China to come up with a stimulus programme before then."
Apart from trade, Shigemi said that investors also took heart from comments by U.S. Federal Reserve Chair Jerome Powell, which pointed toward a slower pace of rate hikes. were concerned about trade and Fed's policy, so right now with the two major worries receding, the environment is favourable for stocks now," Shigemi said.
Renesas Electronics 6723.T , which has deepened a push into semiconductors for self-driving cars, jumped 10 percent.
The broader Topix .TOPX rose 1.3 percent to 1,689.05. (Editing by Richard Borsuk; Editing by Simon Cameron-Moore)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.