By Stanley White
TOKYO, Nov 27 (Reuters) - Japanese stocks rose for a fourth
consecutive session on Wednesday on growing expectations the
United States and China are nearing an agreement to scale back
their bruising trade war.
The Nikkei index closed up 0.28% at 23,437.77, with
advancers in the IT sector and industrial equipment sector
pacing gains. So far this year, the index is up 16.78%.
Japanese shares extended gains, in line with a rally in
equities globally, after U.S. President Donald Trump said on
Tuesday that Washington was in the "final throes" of work on a
deal that would defuse a 16-month trade war with Beijing.
Trump's optimistic comments came one day after top
negotiators from the two countries spoke by telephone and agreed
to keep working on remaining issues. "This type of risk-on mood will continue into next year,"
said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ
Kokusai Asset Management Co in Tokyo.
"The U.S. economy is doing well. Japan is leaning toward
more fiscal stimulus. We also have more indications that the
U.S. and China will reach a trade agreement."
Domestically, Japanese stocks also drew support from the
growing chance of extra fiscal stimulus. A senior ruling party
official on Wednesday said he believes the government is
striving to compile a stimulus spending package worth around 10
trillion yen ($92 billion). Japanese politicians have been calling for more fiscal
spending to revive slowing growth. There were 150 advancers on the Nikkei index against 72
decliners on Wednesday.
The largest percentage gainers in the index were
semiconductor manufacturing equipment maker Screen Holdings Co
Ltd 7735.T , up 4.56%, followed by Hitachi Construction
Machinery Co Ltd 6305.T , which rose 3.78% and property
developer Tokyo Tatemono Co Ltd 8804.T , up 3.76%.
The largest percentage losses in the index were Internet
services firm Z Holdings Corp 4689.T , down 3.13%, followed by
construction and engineering company JGC Holdings Corp 1963.T ,
which lost 2.64%, and medical equipment maker Olympus Corp
7733.T , down 2.36%.
The Topix index .TOPX rose 0.31% to 1,710.98.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.08 billion, below the average of 1.29
billion over the past 30 days.
($1 = 108.6400 yen)
UPDATE 3-U.S.-China trade deal close, Trump says; negotiations
continue govt striving for 10-trln-yen extra budget - LDP official
ruling bloc calls for $92 bln fiscal package to support
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