TSX runs higher on rate cut expectations
By Tomo Uetake
TOKYO, Nov 15 (Reuters) - Japanese stocks rebounded on
Friday as White House comments that Washington and Beijing were
close to striking a trade deal sparked buying in cyclical and
financials.
The benchmark Nikkei share average .N225 rose 0.7% to
23,303.32, though it was 0.4% down for the week.
White House economic adviser Larry Kudlow said on Thursday
an agreement with China could be reached soon, providing a
fillip to investor confidence. The broader Topix .TOPX gained 0.7% to 1,696.67, with all
but two of its 33 subsectors finishing in positive territory.
High-beta shares, or those that are sensitive to economic
cycles were among the biggest gainers, with shippers .ISHIP.T
advancing 1.6% and brokerages .ISECU.T climbing 1.4%.
Interest rate-sensitive REITs performed well on falling
global bond yields, with TSE REIT index up 1.2%. TOP/DBT
Other notable gainers included companies whose earnings
results surprised positively.
Japan Post Insurance 7181.T , hit by a scandal involving
improper sales practices, jumped 5.9% after it forecast a 11.7%
year-on-year increase in net profit for the current financial
year through March. Another scandal-ridden financial institution, Suruga Bank
8358.T , soared 7.4% on its April-September earnings results.
Kadokawa 9468.T surged 6.1% to 2 1/2-year highs after the
publishing and web services company raised its profit outlook.
Asahi Intecc 7747.T rose 4.4% after the medical equipment
maker's quarterly profits beat market expectations. Among losers, messaging app firm Line 3938.T shed 4.7% and
the operator of Yahoo Japan Z Holdings 4689.T dived 7.1% after
massive gains the previous day on news that the two technology
firms are in merger talks. "Now that mid-year earnings season is almost over and given
a lack of fresh trading cues, it's a little bit of a Goldilocks
situation today," a trader at an equity investment firm said.