Nikkei posts 3rd weekly gain, Nintendo surges 14 pct

  • Reuters
  • Stock Market News
Nikkei posts 3rd weekly gain, Nintendo surges 14 pct
Credit: © Reuters.

* Nikkei rises 1.5 pct for the week

* Nissan falls on report it will cut global production, though company denies

By Ayai Tomisawa

TOKYO, April 19 (Reuters) - Japan's Nikkei rose on Friday as investors snapped up cyclical stocks, while Nintendo jumped after Tencent won approval to sell its Switch console in China.

The Nikkei share average .N225 ended 0.5 percent higher at 22,200.56 points. For the week, the index rose 1.5 percent to post its third straight week of gains.

Shares of Nintendo Co 7974.T soared after China's Tencent 0700.HK won a key approval to begin selling Nintendo's Switch console in China, the world's largest games market. The video game maker's shares ended up 14 percent. appetite was buoyed by overnight gains in U.S. markets, which were driven by robust economic data, while industrial stocks rallied after China's commerce ministry said there had been new progress in U.S.-China trade talks. mood has recovered as the market has been able to confirm that a slowdown in the Chinese economy has hit bottom, and that the U.S. and China are making progress in their trade talks. Those were the market's main concerns," said Takashi Ito, an equity market strategist at Nomura Securities.

China's economy grew at a steady 6.4 percent pace in the first quarter, data showed on Wednesday, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement. But analysts cautioned it is too early to call a sustainable recovery.

"While such macro data is improving, U.S. companies started releasing their earnings, and Japanese companies' earnings will be in focus later in the month as well," Ito said.

Machinery, sea transport and electronics stocks outperformed, offsetting weakness in defensive stocks such as railroad operators and utility firms.

Tokyo Electron 8035.T rose 2.3 percent, Fanuc 6954.T added 1.4 percent, Okuma 6103.T soared 2.3 percent, Kawasaki Kisen 9107.T advanced 1.2 percent. East Japan Railway 9020.T shed 1.1 percent and Tokyo Gas 9531.T declined 1.7 percent.

Meanwhile, Nissan Motor 7201.T dropped 2.2 percent after the Nikkei business daily said that it will cut global production by about 15 percent for the current fiscal year ending March 2020, which would be the steepest production cut in more than a decade by the Japanese automaker. in the day, Nissan said that the report was completely incorrect and said that its production plan for the current fiscal year will be disclosed on May 14. broader Topix .TOPX gained 0.1 percent to 1,616.93. (Editing by Jacqueline Wong & Kim Coghill)

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