TOKYO, Aug 19 (Reuters) - Japanese shares advanced on Monday
after hopes of more stimulus from central banks around the world
and steps being taken by major economies such as Germany and
China eased immediate concerns about a slowing global economy.
However, the gains were limited as the U.S.-China trade
dispute remained a nagging worry for market participants.
The Nikkei share average .N225 rose 0.5% to 20,525.45
points, while the broader Topix .TOPX added 0.4% to 1,491.44
by the midday break.
On Wall Street, all three major stock averages closed higher
.DJI .SPX .IXIC on Friday as an ebbing bond rally and news
of potential German economic stimulus brought buyers back to the
equities market. .N/C
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. German stimulus hopes helped the benchmark 10-year U.S.
Treasury yield US10YT=RR rise from three-year lows, while
Japanese government bond yields 0#JPTSY=JBTC took their cue
from the Treasury market and ticked up on Monday. US/N JP/T
Rising bond yields gave a boost to rate-sensitive banks,
which were battered badly by sharp drop in bond yields last
week, with Mitsubishi UFJ Financial Group 8306.T climbing 1.1%
and Sumitomo Mitsui Financial Group 8316.T rising 0.9%.
Another rate-sensitive TSE REIT index .TREIT added 0.3%,
extending its winning streak to a seventh day to hit its fresh
12-year highs since 2007.
At the weekend, China unveiled a new benchmark interest rate
to be launched on Tuesday to help lower borrowing costs and
support the slowing economy. Analysts say the new rate will be
lower than the current one, but are divided over the size of the
cut. However, trade fears are still running quite high 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 . Other notable movers include FamilyMart Uny Holdings
8028.T , up 11.6%, 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 gained 3.1%.