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Japanese shares rise on trade hopes, Topix at 5-month high

Published 24/09/2019, 07:46
© Reuters.  Japanese shares rise on trade hopes, Topix at 5-month high
JP225
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ESZ24
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TOPX
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7201
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8058
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4661
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IMING.T
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ISHIP.T
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By Tomo Uetake

TOKYO, Sept 24 (Reuters) - Japanese shares rose on Tuesday,

buoyed by optimism that high-level U.S.-China trade talks will

take place early next month and investors bought ahead of

companies going ex-dividend later in the week.

The benchmark Nikkei average .N225 edged 0.1% higher to

close at 22,098.84 points, while the broader Topix .TOPX

advanced 0.4% to 1,622.94, its highest closing since April 23.

U.S. stock futures ESc1 rose 0.3%, helped by comments from

Treasury Secretary Steven Mnuchin that U.S.-China trade talks

will take place in two weeks. "While the Nikkei was fairly well supported, we need more

catalysts for further rises," said Takeo Kamai, head of

execution service at CLSA Securities Japan.

"Although speculators have reacted to the trade-related

headlines, real-money people appear to be staying on the

sidelines."

Analysts said speculative traders bought the Topix and

Nikkei futures to get ahead of a wave of expected buying -

estimated to be 700 billion yen ($6.5 billion) in total - later

this week by passive investors who will be reinvesting

dividends.

However, a slowing global economy remained a headache for

financial markets, as poor business activity readings from the

euro zone deepened fears of a recession and suggested more

stimulus was required. Mining .IMING.T and sea transport .ISHIP.T were the

worst performing sectors among the Tokyo bourse's 33 subsector

indexes, down 1.8% and 1.6%, respectively.

Other notable movers include Oriental Land 4661.T , which

jumped 3.0% after the Tokyo Disney Resort operator announced it

would raise theme park admission fees from Oct. 1.

Mitsubishi Corp 8058.T dropped 0.6% after the country's

biggest trading house said a trader at its Singapore-based unit

had lost $320 million through unauthorised transactions in crude

oil derivatives. Elsewhere, Nissan Motor 7201.T slipped 1.0% after the U.S.

Securities and Exchange Commision said the carmaker and its

former chief executive Carlos Ghosn have agreed to settle the

illicit compensation claims from the regulator. Nissan will pay

$15 million, while Ghosn agreed to a $1 million civil penalty

and a 10-year ban from serving as an officer or director of a

publicly traded U.S. company, the SEC said. ($1 = 107.5300 yen)

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