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Nikkei jumps to 13-month high as U.S.-China trade hopes lift sentiment

Published 05/11/2019, 03:50
Updated 05/11/2019, 03:54
© Reuters.  Nikkei jumps to 13-month high as U.S.-China trade hopes lift sentiment
JP225
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TOKYO, Nov 5 (Reuters) - Japan's benchmark Nikkei share

average climbed 1.5% to 13-month highs on Tuesday after a long

weekend, as fresh hopes for a U.S.-China trade deal and upbeat

Wall Street stocks lifted investor sentiment.

Driven by widespread gains, the Nikkei average .N225 rose

to 23,193.66 by the midday break, after hitting an intra-day

high earlier of 23,215.48, its peak since Oct. 10 of last year.

The broader Topix .TOPX advanced 1.2% to 1,686.81, its highest

level in 11 months.

On Monday, all three major stock indexes on Wall Street

finished at record highs on increasing signs the United States

and China are inching closer to a truce in their trade war and

on optimism the U.S. economy is well poised for solid

consumer-driven growth. .N/C

U.S. S&P 500 futures ESc1 gained a further 0.3% in early

Asian trade on Tuesday after the Financial Times reported that

the United States is considering dropping some tariffs on China.

The report came after Beijing and Washington spoke of

progress in trade talks on Friday and U.S. Commerce Secretary

Wilbur Ross said licenses for U.S. companies to sell components

to China's Huawei Technologies will come "very shortly".

On the data front, U.S. non-farm payrolls released on Friday

slowed less than expected in October as the drag from a strike

at General Motors GM.N was offset by gains elsewhere, offering

some assurance that consumers would continue to support the

slowing economy. In Tokyo, China- and semiconductor-related companies led the

gains on Tuesday.

Construction machinery makers Komatsu 6301.T and Hitachi

Construction 6305.T climbed 4.8% and 4.7%, respectively, while

Kobe Steel 55406.T added 2.6%.

Chip-related SUMCO 3436.T , Advantest 6857.T and Tokyo

Electron 8035.T rose 4.2%, 3.5% and 2.2%, respectively.

The Nikkei's heavyweight SoftBank Group 9984.T gained 2.7%

to become the second-most traded stock on the Tokyo's main

board.

The investment conglomerate said on Friday it would book a

277 billion yen ($2.5 billion) gain in the second quarter after

portfolio company Alibaba Group Holding BABA.N recorded a $9.7

billion gain related to its stake in Ant Financial. Elsewhere, Z Holdings 4689.T , formerly known as Yahoo

Japan Corp, surged 13.9% after the e-commerce firm's operating

profit rose by 11.2% year-on-year in the July-September quarter.

= 108.6600 yen)

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