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Nikkei rises, investors focused on U.S. jobs report

Published 07/06/2019, 07:41
Updated 07/06/2019, 07:50
Nikkei rises, investors focused on U.S. jobs report
JP225
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TOPX
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6501
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8035
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6762
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6857
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6954
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8036
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* Chip-related stocks positive
* Nikkei up 1.4% for the week

By Ayai Tomisawa
TOKYO, June 7 (Reuters) - Japan's Nikkei rose on Friday as
reports that Washington is considering a delay in tariffs on
Mexican imports eased wider concerns about weakening global
trade.
The Nikkei share average .N225 ended 0.5% higher
at20,884.71. For the week, the index rose 1.4%.
Investor sentiment recovered slightly after Mexican and U.S.
officials held a second day of talks on trade and migration on
Thursday, amid reports President Donald Trump might delay the
imposition of tariffs that are due on Monday. But trading was thin as most investors stayed on the
sidelines ahead of a U.S. jobs report that will probably do
little to dial back market expectations that the Federal Reserve
will cut rates this year. Turnover on the mainboard was 1.6 trillion yen, the lowest
level in nearly two weeks.
"The market has almost priced in expectations that the Fed
will cut rates. On a trade front, we still don't know the
outcome for the U.S.-Mexican tariff deal, but positive reports
support the mood," said Isao Kubo, equity strategist at Nissay
Asset Management.
Cyclical stocks, such as those in chip-related sectors, were
in demand, with Advantest Corp 6857.T up 5.1% and Tokyo
Electron 8035.T rising 2.8%. Other exporters also gained, with
TDK Corp 6762.T up 2.3% and Fanuc Corp 6954.T adding 1%.
Hitachi High-Technologies 8036.T jumped nearly 15% to a
daily limit-high of 5,450 yen after the Nikkei business
newspaper reported that parent Hitachi Ltd 6501.T is
considering turning the company into a 100% subsidiary.
Hitachi Ltd said it is considering various options to raise
the company's value but nothing has been decided at this point.
The broader Topix .TOPX rose 0.5% to 1,532.39.


(Editing by Kim Coghill)

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