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Nikkei bounces back on trade deal hopes, steelmakers shine

Published 05/12/2019, 03:25
Updated 05/12/2019, 03:27
© Reuters.  Nikkei bounces back on trade deal hopes, steelmakers shine
JP225
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TOPX
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4503
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4568
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6758
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6762
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5401
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5406
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6981
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7974
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6920
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ISTEL.T
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TOPXC
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TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average

bounced back on Thursday, with steelmakers leading the gains,

after comments from U.S. President Donald Trump revived optimism

about trade talks between the United States and China.

The Nikkei 225 index .N225 rose 0.89% to 23,346.05, back

above the 25-day moving average of 23,275, a key technical

level.

The broader Topix .TOPX gained 0.5% to 1,711.80, just shy

of the 13-1/2-month high of 1,719.57 hit late last month.

Topix Core 30 .TOPXC , made up of top 30 firms on the main

board, hit a 14-month high.

Trump said negotiations with China were going "very well,"

fanning the positive mood sparked after a Bloomberg report that

Washington and Beijing were closer to agreeing how many tariffs

would be rolled back. Steelmakers were the biggest beneficiary of latest splurge

in optimism, with the Tokyo Stock Exchange's steel and iron

index .ISTEL.T gaining 2.9%. It was the top performer among 33

industry sub-indexes.

Nippon Steel 5401.T rose 3.8%, JFE Holdings gained 3.4%

and Kobe Steel 5406.T climbed 2.5%.

Semiconductor related shares also outperformed the

benchmark, including Sony 6758.T , which rose the most in over

a year. It later pared some gains to rise 0.1%.

TDK 6762.T rose 2.1% and Lasertec 6920.T gained 0.6% to

hit an all-time high.

Murata Manufacturing 6981.T rose 1.1%, helped by report by

Nikkei business daily that the company has developed new

electronic parts to be used for 5G smartphones.

Nintendo 7974.T edged up 0.1% and stayed near its

1-1/2-year high, supported by hopes of earnings boost from

Switch game console it will launch next week in China.

Among drugmakers, Astellas Pharma 4503.T gained 2.4%,

while Daiichi Sankyo 4568.T rose 1.8%.

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