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Nikkei rises as weak yen boosts exporters; eye on U.S.-China talks

Published 08/10/2019, 04:10
Updated 08/10/2019, 04:20
Nikkei rises as weak yen boosts exporters; eye on U.S.-China talks
USD/JPY
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JP225
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HK50
-
SSEC
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TOPX
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8035
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6645
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IMETL.T
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IPETE.T
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IPRCS.T
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7203
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TOKYO, Oct 8 (Reuters) - Japanese shares rose on Tuesday as

a weaker yen boosted exporters, but volume was thin as many

investors were sidelined ahead of high-level China-U.S. talks

this week to resolve a damaging trade war.

The benchmark Nikkei average .N225 rose 1.0% to 21,596.47

by the midday break, while the broader Topix .TOPX added 0.8%

to 1,585.64, with all but one of its 33 subindexes trading in

positive territory.

Chinese Vice Premier Liu He is scheduled to meet U.S. Trade

Representative Robert Lighthizer and Treasury Secretary Steven

Mnuchin in Washington this week, but hopes for a deal dimmed on

Monday after President Donald Trump said a quick agreement was

unlikely. Overnight, the dollar rallied against the yen from a low of

106.55 yen to as high as 107.465 yen JPY= , providing a boost

for shares of Japanese exporters as a weak yen enhances

corporate profits when they are repatriated.

Among blue-chip exporters, Toyota Motor Co 7203.T rose

1.2%, Tokyo Electron 8035.T advanced 1.6% and Omron Corp

6645.T added 3.1%.

Investor sentiment was also helped by solid starts on the

Shanghai .SSEC and Hong Kong .HSI stock markets after a

one-week holiday in China.

Oil and coal products .IPETE.T , metal products .IMETL.T

and precision machinery .IPRCS.T were the top three performers

in the Tokyo bourse's 33 sector subindexes, up 2.1%, 2.0% and

1.9%, respectively.

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