Tokyo shares gain in cautious mood; Z Holdings, Line climb on merger announcement

  • Reuters
  • Stock Market News
Tokyo shares gain in cautious mood; Z Holdings, Line climb on merger announcement
Credit: © Reuters.

By Tomo Uetake

TOKYO, Nov 18 (Reuters) - Japan's stock benchmark Nikkei rose on Monday on cautious optimism, underpinned by gains in global peers and prospects of a Sino-U.S. trade deal, while Z Holdings and Line Corp (NYSE: LN ) advanced after a formal merger announcement.

The Nikkei average .N225 gained 0.5% to 23,416.76. The broader Topix .TOPX added 0.2% to 1,700.72, with defensive sectors such as pharma .IPHAM.T and telecom .ICOMS.T leading the rally, up 1.3% and 0.9%, respectively.

On Friday, Wall Street's major stock indexes closed at record levels, fuelled by fresh optimism over a potential easing of U.S.-China trade tensions and by big gains in shares of healthcare companies. .N/C

Chinese state media Xinhua said on Sunday that China and the United States had "constructive talks" on trade in a high-level phone call on Saturday, without giving details. and Hong Kong stocks started the week on a strong note on Monday as a cut in a key interbank lending rate on Monday stoked hopes of more stimulus measures to shore up the slowing economy. benchmark Nikkei was flat in early morning but rose after Hong Kong shares opened firmer .HSI , later climbing more than 1%, despite clashes between anti-government protesters and police on the island, traders said. Tokyo, Z Holdings 4689.T , formerly known as Yahoo Japan, and Line Corp 3938.T gained 1.2% and 2.2%, respectively, after the two sides formally annouced a merger plan shortly before the market open to create a $30 billion tech giant. Corp's 9434.T internet unit Z Holdings was the sixth-most traded stocks on the main board, while the messaging app firm Line became the tenth-most traded.

Semiconductor-related shares fared well after Applied Materials AMAT.O forecast first-quarter revenue and profit above Wall Street estimates as the U.S. chip gear maker expects more clients to upgrade their equipment ahead of the 5G rollout in key markets. Advantest 6857.T surged 3.7%, Disco Corp 6146.T jumped 2.9% and Tokyo Electron 8035.T rose 1.8%.

Stella Chemifa 4109.T soared 6.6% on media reports that the inorganic fluorine compounds maker has obtained approval from the Japanese government to export liquid hydrogen fluoride to South Korea.

Elsewhere, Tokyo bourse's Mothers market for startups climbed 1.8% .MTHR to log its biggest daily gain in two months, thanks to biopharmaceutical firm AnGes 4563.T and cloud-based software provider Money Forward 3994.T , up 5.4% and 4.7% respectively.

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