By Tomo Uetake
TOKYO, Aug 19 (Reuters) - Japanese shares rose on Monday as
signs central banks around the world are taking steps to support
their economies helped ease immediate concerns about a global
recession.
However, buyers were somewhat restrained as the U.S.-China
trade dispute remained a nagging worry.
The Nikkei share average .N225 climbed 0.7% to 20,563.16
points, while the broader Topix .TOPX added 0.6% to 1,494.33.
"Improving external factors buoyed Japanese stocks today but
the trading was quite subdued," said Takashi Hiroki, chief
strategist at Monex Securities.
"There is a wait-and-see mood ahead of this week's Jackson
Hole symposium as investors are keen to get fresh hints from
Federal Reserve Chairman (Jerome) Powell."
Turnover on the Tokyo Stock Exchange's main board was thin
at 1.54 trillion yen, its lowest in six weeks, and well below
its daily average of 2.33 trillion yen over the past year.
On Friday, Der Spiegel magazine reported that Germany's
coalition government was prepared to set aside its balanced
budget rule in order to take on new debt and launch stimulus
steps to counter a possible recession. In addition, China's central bank unveiled a key interest
rate reform on Saturday, in a move viewed as a guided rate cut,
to help steer borrowing costs lower for companies and support a
an economy gripped by the bruising trade war with the United
States. Those stimulus hopes helped yields on U.S. Treasuries and
Japanese government bonds 0#JPTSY=JBTC rise on Monday from
multi-year lows. US/N JP/T
That boosted rate-sensitive banks, which were battered by
the sharp drop in bond yields last week, with Mitsubishi UFJ
Financial Group 8306.T advancing 1.3% and Sumitomo Mitsui
Financial Group 8316.T rising 0.8%.
Another rate-sensitive TSE REIT index .TREIT remained in
demand, up 0.2% to extend its winning streak to a seventh day to
a fresh 12-year high.
However, trade fears are still alive and weighing on
investor sentiment as U.S. President Donald Trump on Sunday said
he did not want the United States to do business with China's
Huawei HWT.UL even as the administration weighs whether to
extend a grace period for the company. Other notable movers include FamilyMart Uny Holdings
8028.T , jumping 8.7%, after the convenience chain operator
said it will buy as much as around 16 million additional shares
in Pan Pacific International Holdings 7532.T through August
2021. Pan Pacific, discounter Don Quijote's parent,
rose 4.2%.