TOKYO, Sept 6 (Reuters) - Japanese shares reached another
one-month on Friday as better-than-expected U.S. economic data
and hopes for progress from coming trade talks between the
United States and China bolstered risk appetites.
The benchmark Nikkei average .N225 gained as much as 0.7%
to 21,241.29 in mid-morning trade, its highest level since Aug.
1, while the broader Topix .TOPX rose as much as 0.5% to
1,542.38, its highest in a month.
Global equity markets welcomed upbeat data from the United
States and news that Washington and Beijing agreed to high-level
talks early in October, raising hopes for a de-escalation of the
damaging conflict. On Thursday, ADP (NASDAQ:ADP) data showed U.S. private payrolls increased
in August at their fastest pace in four months. Separately, U.S.
the services industry rebounded last month to its fastest
expansion since February, according to the ISM's
non-manufacturing PMI. The dollar climbed to a one-month high of 107.235 yen
overnight JPY= , providing a tailwind for shares of Japanese
exporters as a weak yen enhances corporate profits when they are
repatriated.
Machinery .IMCHN.T and automakers .ITEQP.T , major
beneficiaries of a weakening yen, were the two top performing
sectors of the Tokyo's 33 subindexes, up 1.5% and 1.3%,
respectively. Nissan Motor Co 7201.T climbed 2.5% and Honda
Motor Co 7267.T advanced 2.8%.
Bank shares gained broadly after U.S. Treasury yields ticked
higher overnight. Mitsubishi UFJ Financial Group 8306.T and
Sumitomo Mitsui Financial Group 8316.T rose up 1.7% and 1.4%,
respectively, while the banking sector subindex .IBNKS.T added
1.2%. Bucking the trend, Nikkei heavyweight SoftBank Group Corp
9984.T shed 3.8% on media reports that WeWork, owner of office
space sharing startup The We Company, might slash the valuation
it will seek in a planned initial public offering. WeWork is
backed by SoftBank Group, which has invested or committed to
invest $10.65 billion since 2017.
Rakuten Inc 4755.T dived 6.1% after media reports that the
internet firm is pushing back the commercial launch of its
wireless carrier service by six months because of delays in
building the network. Credit Saison Co 8253.T jumped 3.0% after it and Daiwa
Securities 8601.T announced a capital alliance, with Daiwa
acquiring 5% of Credit Saison's shares. Daiwa rose 1.7%.